A&M Tax Advisor Update
HMRC has just announced that the second phase of Making Tax Digital for VAT (‘MTD’), initially scheduled for April 2020, has now been delayed one year and will come into effect on 1 April 2021. This is another measure to ease businesses’ operations against the impact of the COVID-19 crisis.
Phase 2 is meant to be the end of the “soft landing period” allowed by HMRC. In phase 2 businesses must have a full end-to-end digital solution comprising the digital bookkeeping, journey and submission of the VAT returns requiring specific software, subject to penalties in case of non-compliance. This ensures adequate time for businesses to get ready.
A specialist team in indirect taxes within A&M Taxand is already assisting clients on COVID-19 crisis impact on their specific businesses and needs, therefore if you would like to discuss Making Tax Digital or more generally how to unlock cash critically needed for your business then please reach out to any of the authors.