close
Share with your friends

Making Tax Digital for VAT: Digital links extended to 1 April 2021

Making Tax Digital for VAT

HMRC are providing MTD businesses with more time to put in place digital links between all parts of their functional compatible software.

1000

Also on home.kpmg

We understand that, given the impact of COVID-19, HMRC are providing all Making Tax Digital (MTD) businesses with more time to put in place digital links between the programs which form part 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.

It is encouraging that HMRC have listened and taken a pragmatic approach. This is already an exceptionally difficult time for businesses without them also having to spend time and money to comply with the full digital link requirements that would otherwise, absent this extension, have applied for most businesses for returns starting on or after 1 April 2020.

Some larger more complex businesses were not mandated to apply MTD until their first return starting on or after 1 October 2019. These businesses had a digital links soft landing period until the first return starting on or after 1 October 2020 so having digital links in place across all their functional software is less urgent for them, but they will also benefit from this extension to 2021. This automatic extension means businesses struggling to get all required digital links in place will not now need to make a specific application for an extension as set out in Notice 700/22 4.2.1.3.

For more information please contact : 

© 2020 KPMG LLP a UK limited liability partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

For more detail about the structure of the KPMG global organisation please visit https://home.kpmg/governance.

Connect with us

 

Want to do business with KPMG?

 

loading image Request for proposal