Making Tax Digital (MTD) for online VAT submissions soft landing period has been extended by HMRC!
At the beginning of this month HMRC announced that due to these unprecedented times the MTD soft landing period has extended from 1st April 2020 to 1st April 2021.
HMRC, in recent correspondence to Developers:
“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.”
In further COVID-19 news, don’t forget that you are still required to submit your VAT returns to HMRC on time! However, to assist business to manage their cashflow during this time, HMRC have announced that VAT payments due between the 20th March 2020 and the 30th June 2020 are able to be deferred until a later payment date with zero interest or penalties. We have been informed that HMRC will continue to process VAT reclaims and refunds as normal during this time.
“If you’re a UK VAT registered business and have a VAT payment due between 20 March 2020 and 30 June 2020, you have the option to:
- defer the payment until a later date
- pay the VAT due as normal
It does not cover payments for VAT MOSS or import VAT. HMRC will not charge interest or penalties on any amount deferred as a result of the Chancellor’s announcement.”
If you choose to defer your VAT payment, you must pay the VAT due on or before 31st March 2021, further information about how to make a deferred VAT payment will be released by HMRC soon. You do not need to tell HMRC that you are deferring your VAT payment. If you are deferring your VAT payments, don’t forget to cancel that Direct Debit before submitting your return!
Submitting your VAT return online has never been easier with My Digital Bridge. Pay as you go VAT submissions, with UK based support from VAT experts, be a part of our community with the latest information direct from HMRC.
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