Commentary

V5.101B Making Tax Digital ('MTD') for VAT—returns for periods commencing on or after 1 April 2019

Part V5 Compliance, enforcement and appeals

V5.101B Making Tax Digital ('MTD') for VAT—returns for periods commencing on or after 1 April 2019

V5.101B Making Tax Digital ('MTD') for VAT—returns for periods commencing on or after 1 April 2019

In the 2015 Budget, the government set out proposals (Overview of Tax Legislation and Rates, March 2015) for 'digitising' the tax system. This was followed in December 2015 by the Making Tax Digital roadmap (Making Tax Digital Roadmap). The roadmap set out the government's plans to make fundamental changes to the tax system, providing taxpayers with 'a single, personalised view of their overall tax position across all of their tax liabilities'. This change involves businesses submitting information online to HMRC on a quarterly basis. In terms of VAT, given that most businesses already submit VAT returns on a quarterly basis, the requirement to submit such information replaces (but is not limited to) the requirement for the submission of VAT returns from 1 April 2019 (Making Tax Digital for business). It only applies, in respect of VAT returns commencing prior to 1 April 2022, to businesses that have a turnover above the VAT registration threshold. Thus voluntary registrations are currently not required to comply (but may do so if they wish)1. For returns commencing on or after 1 April 2022, all businesses (other than those exempted – see 'MTD for VAT—application and scope' below) will be required to keep their VAT records, and submit their VAT returns, in digital form2.

The 2017 Finance Bill, cl 122 (withdrawn) was to have amended VATA 1994 with effect from Royal Assent to make initial provisions for the introduction of

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to TolleyLibrary or register for a free trial