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UK MTD deferral requires HMRC approval

  • Jan 8, 2019 | Richard Asquith

UK MTD deferral requires HMRC approval

In October 2018, HMRC announced the deferral of Making Tax Digital (MTD) by six months for over 35,000 businesses. The affected businesses including those filing:

  • group VAT returns;
  • VAT divisions;
  • trusts;
  • non-resident tax payers;
  • businesses making payments on account;
  • businesses on annual accounting scheme; and
  • public bodies with supplementary disclosure requirements.

Deferral is granted by a direct notification from HMRC, which have now been sent out. Any businesses which have not received such a communication are therefore required to implement the new requirements from 1 April 2019. VAT payers should therefore contact HMRC now if they believe they qualify for the deferral, but have not yet received a HRMC letter.

MTD filing for over 1 million businesses

From 1 April 2019, over 1 million UK businesses will be required to file their VAT returns via HMRC’s new Making Tax Digital (MTD) API-portal. This will require accounting software or specially enabled Excel spreadsheets to file the nine-box information directly without human intervention or manual keying-in.

Need help with your UK VAT compliance?

Researching UK VAT legislation is the first step to understanding your VAT compliance needs. Avalara has a range of solutions that can help your business depending on where and how you trade. 

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VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which won International Tax Review's 2020 Tax Technology Firm of the Year. Richard trained as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.
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