New guidelines have been announced by HMRC – now giving them longer to make the digital transition.
Following the announcement from HMRC last week – offering companies the opportunity to delay making their VAT payments to HMRC, they have now relaxed the Making Tax Digital for VAT legislation dates for phase 2, giving businesses longer to make the change from manual submissions to going fully digital.
Making the digital transition to MTD for VAT
COVID-19 is creating extremely difficult times for all, and HMRC have confirmed that they are “committed to helping in every way possible all those businesses facing unprecedented challenges”.
Therefore, HMRC are providing all MTD businesses with more time to put in place digital links between all parts of their functional compatible software. This means that all businesses now have until their first VAT return period starting on or after 1 April 2021 to put digital links in place.
Delaying VAT payments
If you’re a UK VAT registered business and have a VAT payment due between 20 March 2020 and 30 June 2020, you have the option to:
- defer the payment until a later date
- pay the VAT due as normal
But it’s important to remember that you still need to continue to make your VAT submissions…
HMRC have also said that they will continue to process VAT reclaims and refunds as normal during this time.
One option is to use KFA Connect’s FREE bridging software solution Magic Tax.
KFA do not profit from the solution at all, we are simply asking businesses who find the solution useful to make a donation to our chosen charity Marie Curie.
Suggested donation, £20.00 per vat submission filed.
Charities at the moment need as much help as they can get, so now is a great time to use Magic Tax to help your business and helping a very worthy charity in the process!
For full details on any of the above, please visit HMRC website.