HMRC will delay the requirement to implement digital links for Making Tax Digital (MTD) due to the coronavirus pandemic.
HMRC have 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.”
All organisations will now have until their first VAT return period starting on or after 1st April 2021 to put digital links in place.
Making Tax Digital is HMRC’s project to digitise the tax system. It says its ambition is “to become one of the most digitally advanced tax administrations in the world”. VAT is the first area of tax to be implemented under the scheme.