HMRC has confirmed an extension to the deadline for implementing digital links between software applications used in making tax digital (MTD) for VAT. Businesses will now have until their first VAT return period starting on or after 1 April 2021 to put these links in place. This requirement had been due to come into effect from 1 April 2020.
In a statement, HMRC said: ‘We understand that the impact of Covid-19 is creating extremely difficult times for all, and we are committed to helping in every way possible all those businesses facing unprecedented challenges. Therefore, we are providing all MTD businesses with more time to put in place digital links between all parts of their functional compatible software. This means that all businesses now have until their first VAT return period starting on or after 1 April 2021 to put digital links in place’.
John Cullinane, CIOT tax policy director, commented that deferral of the digital links requirements was one of the key suggestions the institute put to the financial secretary to the Treasury as the likely impact of Covid-19 broke. The CIOT is ‘pleased that the government agrees that this is one measure that can be put on ice while businesses concentrate on survival’.
HMRC has confirmed an extension to the deadline for implementing digital links between software applications used in making tax digital (MTD) for VAT. Businesses will now have until their first VAT return period starting on or after 1 April 2021 to put these links in place. This requirement had been due to come into effect from 1 April 2020.
In a statement, HMRC said: ‘We understand that the impact of Covid-19 is creating extremely difficult times for all, and we are committed to helping in every way possible all those businesses facing unprecedented challenges. Therefore, we are providing all MTD businesses with more time to put in place digital links between all parts of their functional compatible software. This means that all businesses now have until their first VAT return period starting on or after 1 April 2021 to put digital links in place’.
John Cullinane, CIOT tax policy director, commented that deferral of the digital links requirements was one of the key suggestions the institute put to the financial secretary to the Treasury as the likely impact of Covid-19 broke. The CIOT is ‘pleased that the government agrees that this is one measure that can be put on ice while businesses concentrate on survival’.
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