The MTD deadline of 1 April 2019 is fast approaching.
From that date, VAT registered businesses will need to have in place a mechanism whereby they can report transactions in a digital format directly to HMRC.
Our experience suggests that many businesses have invested in compliant software already and are well trained and supported in using it. We are however increasingly aware that some businesses are adopting the “head in the sand” ostrich approach in the hope that if they do not comply then what could possibly happen? Well, HMRC have said that they will provide a soft landing for the first twelve months of operation without imposing fines or penalties for late submissions which arise from technical issues. Our understanding is that this will not be in any way a charter for habitually submitting Returns late. We are also finding that some smaller businesses are unhappy with the costs associated with this imposed system but moreso there seems to be a wider problem with those adopting new software and requiring training before it can be used. If you are in any doubt whatsoever as to how MTD will affect your business please get in touch.