Making Tax Digital is live but not all businesses are obliged to use the MTD system at this point


MTD comes into effect today but there are a number of businesses that are not obliged to use the MTD system at this point in time.  These include:

  • Trusts
  • ‘Not for Profit’ organisations that are not set up as a company
  • VAT divisions
  • VAT groups
  • Public entities required to provide additional information on their VAT return (Government departments and NHS Trusts)
  • Local authorities
  • Public Corporations
  • Traders based overseas
  • Those required to make payments on account
  • Annual accounting scheme users

If your business falls into one of these categories you should have received a letter stating that you are eligible for a six-month deferment from HMRC, meaning that you date to start being MTD compliant commences from 1st October 2019.

If you have received this letter, confirming that you are entitled to the deferment, you can continue to file your VAT returns using your current methods.

However, if you have not received this letter and you believe that your business does fall into one of these categories you will not automatically be granted the six-month extension. It Is therefore essential that you contact HMRC immediately to explain your circumstances and they will confirm whether you are entitled to the six-month deferral.

Without this letter you are not eligible and will be expected to start submitting MTD VAT returns from 1st April.

If you are needing assistance with MTD or have any questions, please feel free to contact Jackie Senior on or 01904 464116 or Aaron Sutton on or 01904 464220.