Making Tax Digital - software pilots and testing

In 2018, UK’s HMRC launched a series of test pilots for its new Making Tax Digital VAT filing process. Making Tax Digital goes live on 1 April 2019, and will require all UK VAT registered businesses to file their quarterly returns via HMRC’s API platform.

The pilot commenced on 11 April 2018. This is a private pilot, with a number of software providers being invited to test their solutions with HMRC and then receiving HMRC formal approval upon successful test filing.

HMRC has staggered the tax payer categories that may be tested in the following pilots:

Launch month Tax payers category
Oct 2017 HMRC release application programming interfaces (APIs) which provide details of the data to be filed, and end points
Apr 2018 pilot launch Private testing: Tax payers with the simplest returns. This means basic domestic sales and purchases for VAT trasactions
Nov 2018 Tax payers with EC dispatches and arrivals
Dec 2018 Public sector bodies with VAT filings
Early 2019 Public testing phase
Apr 2019 Launch with MTD filing requirements for all VAT payers above the VAT registration threshold

Latest British news

EU moves new B2C VAT liabilities to marketplaces 2021

December 12, 2018

On 12 December, the European Commission published details of a new rule which would make large online marketplaces responsible for calculating, collecting and remitting VAT on certain B2C cross-border transactions below €150. Where goods are imported by an EU or non-EU merchant, and then sold via a marketplace in another EU country..

UK HMRC no-deal Brexit actions

December 10, 2018 

The UK’s HMRC has written to all VAT-registered businesses that trade with the EU to recommend immediate actions in the case of a no-deal Brexit on 29 March 2019. This is over 140,000 businesses.

UK Brexit VAT and customs update

November 26, 2018

The EU27 governments have now agreed the Brexit Withdrawal Agreement (WA) which sets out the terms of the UK’s exit from the EU on 29 March 2019....