Making Tax Digital for VAT
Penalty regime starts 1st April 2020
If your business is filing VAT in the UK, you need to make sure you are prepared for the next phase of HMRC’s Making Tax Digital (MTD) for VAT. The ‘soft-landing’ period of MTD ends on 1 April 2020, which means your business will face significant penalties if you do not comply with the new digital recordkeeping and ‘digital journey’ requirements.
Whilst UK VAT payments have now been deferred for three months during the COVID-19 outbreak, filings are still required to declare VAT due. The new MTD rules are still applicable from 1 April 2020.
The new MTD for VAT obligations for 2020, backed-up by the threat of penalties for the first time, mean taxpayers need to fully digitise their VAT recording and return preparation processes. Businesses will no longer be able to manually adjust figures for consolidations, or use ‘cut and paste’ in Excel.
The changes in legislation cover:
- Digital recordkeeping
- Complete digital journey
- Start of the penalty regime
This webinar outlines what requirements are being implemented, whether you can obtain an extension until 2021 and how Avalara can help ensure you are fully compliant.
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.