Making Tax Digital for VAT
Starting on 1 April HMRC will impose new requirements on over 1million businesses
On 1 April 2020, phase 2 of Making Tax Digital (MTD) for VAT starts with the ending of the UK’s HMRC’s ‘soft landing’ first phase. This requires the stringent implementation of the ‘digital journey’ with no manual intervention when preparing VAT returns, plus the start of fines for failure to comply with any part of the MTD requirement.
Join Richard Asquith at the Langham Hotel, London as he discusses how the three reforms are going to affect over one million VAT registered businesses in 2020 and what your business should be doing now in order to mitigate the risk of incurring penalties from HMRC.
End of the soft-landing phase
The 2020 MTD requirements that come into effect on 1 April, end the initial 1-year soft-landing phase of the 2019 MTD filing changes. These new requirements compromise three measures:
- The imposition of the complete digital journey.
- Requirements to maintain VAT transaction data in digital format;
- Penalties for failure to observe the full MTD requirements. These were put aside when MTD for VAT was introduced in April 2019.
The imposition of the complete digital journey requires businesses deployment of digital links on any VAT transactional data being transferred between accounting, ERP, invoicing or other systems through to the digital VAT filing.
In short, the hard work and software investment will be for April. And it’ll affect hundreds of thousands of businesses. If 2019 was just a change of lightbulb, 2020 is redoing the whole electrics.
Langham Hotel, London
1C Portland Pl,
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.