United Kingdom

UK MTD pilot goes public; Oct 2019 groups & non-resident delay

October 16th, 2018

HMRC announced today that it is opening the test pilot for its Making Tax Digital for VAT programme to the public.  However, HMRC also announced that it is deferring the MTD obligations for group VAT returns, non-residents and certain other use cases until October 2019. MTD will require digital transactional recording and filing of UK VAT …


United Kingdom

Avalara MTD Filer FREE tool for HMRC’s MTD

October 4th, 2018

From 1 April 2019, more than 2 million VAT-registered businesses will be required to digitize their accounting and VAT filing for the new HMRC Making Tax Digital (MTD) requirements. This ends manual keying-in of VAT return data on HMRC’s existing online VAT platform, which HMRC says is used for 88% of current VAT filings. HMRC …


United Kingdom

UK Making Tax Digital pilot goes public

September 20th, 2018

The UK’s HRMC has confirmed the next-stage plans for its Making Tax Digital (MTD) for VAT pilot. The pilot is aimed at helping develop filing solutions to ensure businesses are ready to file returns on the new HMRC API platform from 1 April 2019. So far, the pilot has been closed just to software developers …


United Kingdom

UK non-tariff Brexit risks

September 13th, 2018

As the increasingly febrile politics of a no-deal Brexit pushes the UK towards a no-deal EU departure, businesses are beginning to take the implications for their international trade seriously. This includes concern over potential tariffs if the UK leaves the Single Market and EU Customs Union. But fretting about tariffs is 19th Century thinking for a 21st …


United Kingdom

HMRC probes VAT import fraud

August 30th, 2018

The UK’s HMRC has launched a review into non-VAT registered importers of goods into the UK. It is looking to survey the numbers of businesses bringing goods into the country without a UK VAT registration to help understand if it can reduce the estimated £1.5billion in VAT fraud. Whilst it is not obligatory to have a …


United Kingdom

UK issues Brexit no-deal VAT guidance notice

August 23rd, 2018

The UK has today issued a range of guidance notices informing the public and businesses of the implications of the UK leaving the EU on 29 March 2019 without a formal Withdrawal Agreement. The government emphasizes that this is unlikely given the progress of ongoing discussions. One of the notices covers VAT implications for businesses …


United Kingdom

MTD – penalties

August 20th, 2018

With the 1 April 2019 launch of the UK’s Making Tax Digital (MTD) initiative for VAT recording and filing, HMRC has taken the opportunity to update the VAT penalty regime to bring it into line with income and corporation taxes. The new regime will be as follows: Penalties for late VAT MTD submissions  The UK …


United Kingdom

MTD – software pilots and testing

August 16th, 2018

In 2018, UK’s HMRC launched a series of test pilots for its new Making Tax Digital VAT filing process. Making Tax Digital goes live on 1 April 2019, and will require all UK VAT registered businesses to file their quarterly returns via HMRC’s API platform. The pilot commenced on 11 April 2018. This is a …


United Kingdom

MTD – what’s changing?

August 13th, 2018

Manual accounting records Required VAT records VAT filings Adjustments to VAT returns Error corrections Supporting VAT data Businesses below £85,000 VAT threshold Annual VAT return filers VAT Flat Rate Scheme Retail Scheme Margin schemes Non-resident UK VAT payers rules