VATLive > Blog > European News > UK MTD for VAT go ahead; delay on extension to other taxes

UK MTD for VAT go ahead; delay on extension to other taxes

  • Mar 16, 2019 | Richard Asquith

The UK’s Chancellor of the Exchequer, Philip Hammond, confirmed in his Spring Statement that Making Tax Digital (MTD) for VAT will still go ahead on 1 April 2019 in the event of a no-deal Brexit on 29 March. There has been some public debate in the media about the ability of HMRC to manage both major changes to the UK VAT regime.

However, he also stated that the plan to extend MTD to income and corporation taxes in 2020 will now be delayed. 

MTD for VAT requires most 1.2million VAT registered businesses above the £85,000 VAT registration threshold to use HMRC’s new API-platform for filing VAT returns. From 2020, this will include no manual intervention of the recording, compilation and submission of VAT data. However, for April 2019, this will be limited to just having to complete the last step of the process, filing digitally. In practise, this means mandated businesses must use API-enabled accounting software, or API Excel bridging software to transmit the 9-box VAT return data to HRMC’s online portal. There will be no online keying in of data.

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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