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Where Taxpayers and Advisers Meet

MTD postponement

pawncob
Posts: 4280
Joined: Wed Aug 06, 2008 4:06 pm
Location: West Sussex

MTD postponement

Postby pawncob » Thu Jan 03, 2019 4:29 pm

I've just got a letter from HMRC telling me that I am one of a "small number of customers " who can delay the implementation of MTD for VAT until October 2019.
I suspect that it's 50% of customers because they'll be swamped. Anyone else had this letter?
With a pinch of salt take what I say, but don't exceed your RDA

robbob
Posts: 2769
Joined: Wed Aug 06, 2008 4:01 pm

Re: MTD postponement

Postby robbob » Thu Jan 03, 2019 6:00 pm

Nothing in my santa stocking on XMAS morning in that regard :(

Do they not fall within one of the subgroups that hmrc aren't ready (other than everyone :))for yet and are therefore "automatically" deferred deadline wise?

eg businesses using annual accounting for vat or making payments on account.

Q & A Time
Q - as agents once you have transferred all the clients over to the new vat MTD agent area how do you access you client last within the agent area for vat?
A - answer you can't - there will be no client list and those clients will only be findable via the individual software that is used to make thats companies MTD submissions

Ughhhh - does this mean there will be no access to historical vat return information from hmrc?

I guess hmrc will say its all in the software stupid why would you ever need to check anything historical based on what they have on their system.
It's not like a cloud computing provider is ever going to run out of money and switch of their servers are they ?

Trevor S
Posts: 23
Joined: Tue Jan 01, 2019 12:37 am

Re: MTD postponement

Postby Trevor S » Fri Jan 04, 2019 12:02 am

The deferral applies to about 3.5% of VAT registrations, however as these will tend to be larger more complex organisations, so the amount of VAT involved is likely to be much higher. A list of deferred categories is https://www.gov.uk/government/publications/making-tax-digital/overview-of-making-tax-digital.
One thing worth remembering ... there is (currently) no deferral to the "soft landing period" - therefore digital links must still be in place by the April 2020 return.

dbeard
Posts: 3
Joined: Wed Aug 06, 2008 4:01 pm
Location: UK

Re: MTD postponement

Postby dbeard » Tue Jan 15, 2019 11:16 am

I deal with 3 quarterly VAT Returns - 2 of the 3 entities have received letters advising of the deferral until 1st October 2019 - I believe that is because they are VAT Groups.

robbob
Posts: 2769
Joined: Wed Aug 06, 2008 4:01 pm

Re: MTD postponement

Postby robbob » Tue Jan 15, 2019 12:53 pm

I rang vat office ref annual accounting scheme client with vat period 1st april to 31st march

as they are on annual accounting with payments on account they are delayed till october 19 per guidance

hmrc helpline couldnt even confirm first making tax digital period requirement

I am guessing they dont go on till 1/4/2020 being first period commencing after revised october mandation date



hmmmmm could i swap all our clients onto annual accounting for 12 months to delay the issue ? - tempting :)

- I believe that is because they are VAT Groups.
Yes - that is confirmed in the guidance linked by Trevor S
October 2019 Making Tax Digital mandated for customers that have been deferred. The 6-month deferral applies to customers who fall into one of the following categories: trusts, ‘not for profit’ organisations that are not set up as a company, VAT divisions, VAT groups, those public sector entities required to provide additional information on their VAT return (Government departments, NHS Trusts), local authorities, public corporations, traders based overseas, those required to make payments on account and annual accounting scheme users.

Trevor S
Posts: 23
Joined: Tue Jan 01, 2019 12:37 am

Re: MTD postponement

Postby Trevor S » Wed Jan 23, 2019 11:50 pm

Further to my earlier post, HMRC have now announced a six month deferral on the soft landing period for those affected by the deferral previously announced. Therefore those VAT registrations that have been deferred will still have a full twelve month soft landing period.

This is included in a recent update to HMRC's MTD VAT notice.

robbob
Posts: 2769
Joined: Wed Aug 06, 2008 4:01 pm

Re: MTD postponement

Postby robbob » Thu Jan 24, 2019 9:53 am

Thanks for that Trevor.

strewth deferring everything other than what we want deferred (everything for 12 months)

Strangely i was speaking to hmrc about this exact issue recently (perhaps my rant got them to update this :)) and it appears they gave me the wrong advise, i was told categorically no extension to the soft landing period - ho hum.

The new added bit thankfully puts stuff in black and white rather than speaking to poor helpline bods who have had no help from above and are generally dishing out the wrong answer that mtd applies for overlapping returns when it doesn't for these cases.

One thing they did helpfully warn me was that under no circumstances should one sign up for the "making tax digital" until all previous periods returns are fully done and dusted. It appears there is no going back once you sign up.

https://www.gov.uk/government/publications/vat-notice-70022-making-tax-digital-for-vat#history

Here is the new text update
18 January 2019
The notice has been updated to clarify the Making Tax Digital rules at section 2.1, and at section 3.2.1.1 to reflect that for a small number of businesses the Making Tax Digital rules will not apply until their first VAT Return period starting on or after 1 October 2019 and that the digital links ‘soft landing period’ for those deferred businesses will be 12 months from their start date.

pawncob
Posts: 4280
Joined: Wed Aug 06, 2008 4:06 pm
Location: West Sussex

Re: MTD postponement

Postby pawncob » Thu Jun 20, 2019 5:21 pm

Having agreed with HMRC that a client DOESN'T have to register for MTD , I have now been passed a letter inviting them to join MTD ASAP voluntarily. Which part of "Not Interested" don't they understand?
And today an email from HMRC extolling the virtues of MTD, and using a butchers in Dorset to illustrate their point.
https://www.youtube.com/watch?v=X0fRI7M76no&utm_source=HMRC&utm_medium=email&utm_campaign=quarterly+VAT+June+2019&utm_content=4+plan+plus

All those zero rate sales must impose a real VAT burden.
With a pinch of salt take what I say, but don't exceed your RDA

robbob
Posts: 2769
Joined: Wed Aug 06, 2008 4:01 pm

Re: MTD postponement

Postby robbob » Thu Jun 20, 2019 6:54 pm

Newsflash

HMRC have announced a Giant delay to MTD for vat - (shame the devil is in the detail)

robbob
Posts: 2769
Joined: Wed Aug 06, 2008 4:01 pm

Re: MTD postponement

Postby robbob » Thu Jun 20, 2019 7:29 pm

Here are the full Giant delay details

The list of deferred businesses includes all public sector entities which are required to submit additional information alongside their VAT return, such as NHS trusts and government departments. Those entities use a special online system to submit that additional information known as the GIANT service (Government Information and NHS Trust).


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