In recent weeks, concerns have been raised that not just small businesses, but HM Revenue & Customs (HMRC) itself, is not fully prepared for Making Tax Digital (MTD).
Up until very recently, MTD was due to be rolled out for all VAT-registered businesses earning above the VAT registration threshold of £85,000 from 1 April 2019.
However, HMRC recently announced that it has had to push back the rollout of MTD for VAT for the largest businesses with ‘the most complex’ VAT affairs until October, sparking concerns that HMRC is struggling to stick to its MTD timetable.
In addition to this, the Revenue has admitted to a number of UK farmers and agricultural business owners that it is struggling to process new applications for exemption to MTD – and that applications are likely to be delayed by around one month.
According to a report in Farmers Weekly, rural; firms contacting the tax authority to apply for exemptions have been informed that the exemption process is not yet up and running.
In some cases, they have even been told that the criteria for processing exemptions is yet to be finalised, despite MTD for VAT due to be rolled out for hundreds of businesses in less than six months’ time.
For those farmers that will be affected by MTD from April or October, the project poses a number of big challenges and preparation is vital.
MTD will remove firms’ ability to manually submit VAT information into HMRC’s website and will instead require them to store, process and submit their VAT information using MTD-friendly software.
If you are worried about MTD and you need help preparing for its implementation, get in touch with our expert team today.