HM Revenue and Customs (HMRC) has published further information on MTD to support businesses and agents in the run up to the start of the mandatory MTD VAT service from April 2019.
The key points are as follows:
- The digital records businesses must keep, and where HMRC have relaxed these requirements in certain circumstances e.g. where a mixed rate supply is made and where a business uses a special VAT scheme such as a retail scheme or the Flat Rate Scheme.
- How businesses must use software to keep digital records and file their returns from those digital records, including information on when programs do and do not need to be digitally linked in situations where a combination of software programs is used.
- HMRC has been working with software providers to help them to bring a wide range of MTD products to market, and has published a list on GOV.UK of those that are already at the stage of having demonstrated a product ready to start testing with businesses and/or agents.
Although we understand that a pilot scheme was running until 30 June, the new guidance just released by HMRC also provides an email address that allows businesses to apply to HMRC to join an ongoing ‘private’ pilot scheme.
If you would like to discuss anything to do with MTD, please contact one of our VAT experts.