Covid 19 – VAT Update – Making VAT Digital (MVD) Delay
HMRC is to announce a further one year delay to the implementation of the internal Digital Links requirements which were to be required from the 1st April or the 1st October 2020 depending on whether the organisation had benefitted from the original six months deferral granted back in 2019. This second stage of implementation applies to the need under Making VAT Digital to have in place digital links to transfer VAT data through the accounting process through to the VAT Return. The VAT Return submission itself, through a digital link with HMRC, formed the first stage of the MVD rollout and it is the second stage of the digital compliance relating to the wider internal VAT data process that will be subject to this further delay.
The new deadline will be that the first VAT return period starting on or after the 1st April 2021 will now be the target date for compliance on internal digital steps. HMRC’s website has yet to post a formal notice but the information has been shared with a range of stakeholders including the Charity Tax Group.
It is certainly welcome news for many of our larger clients including those across the Education, Housing and Charity sectors. The availability and priority of staff to be able to address the implementation of the required digital links within complex accounting processes has clearly been recognised by HMRC as a challenge in the current circumstances. We will post more information as it appears and as ever do get in touch with your usual Centurion contact when the time comes to refocus on the remaining steps to get ready for this new date. Use email@example.com as well as all of our VAT Expert team have access to that to be able to respond to any questions.
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