COVID-19 guidance on GOV.UK 

All HMRC COVID 19 guidance is included on GOV.UK as part of the Government’s response to COVID 19 at https://www.gov.uk/coronavirus 

Specific guidance for businesses and employers is at:  https://www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-covid-19 

Digital links

We’re providing MTD businesses with more time to put in place digital links between all parts of their functional compatible software. It is important for businesses to note that despite this relaxation they still need to ensure they are keeping digital records, submitting VAT returns via an API enabled software and maintaining all digital links they currently have in place.  

All businesses now have until their first VAT return period starting on or after 1 April 2021 to put digital links in place. This is published on GOV.uk in paragraph 4.2.1.1 of VAT Notice 700/22: https://www.gov.uk/government/publications/vat-notice-70022-making-tax-digital-for-vat/vat-notice-70022-making-tax-digital-for-vat] 

VAT payment deferral  

We emailed our agent distribution list about this on Friday 27 March.  If your clients want/need to defer payment you still need to file a return. There’s no need to apply for the deferral BUT Direct Debit payers will need to cancel their mandate in time to avoid HMRC requesting payment. You can find GOV.UK guidance here: https://www.gov.uk/guidance/deferral-of-vat-payments-due-to-coronavirus-covid-19 

Evaluation of the rollout of MTD for VAT 

The Government has published a comprehensive evaluation of the rollout of Making Tax Digital for VAT, undertaken before the onset of COVID-19. This responds to requests from stakeholders to review the roll-out of MTD for VAT before the government decides on the next phases of MTD. You can view the assessment here: https://www.gov.uk/government/publications/making-tax-digital/overview-of-making-tax-digital 

HMRC is committed to helping businesses facing unprecedented challenges.

Please stay safe.