1 in 10 UK businesses have missed the first Making Tax Digital for VAT deadline.
Approximately 120,000 businesses failed to meet the 7th of July payment deadline, which should result in a penalty from HMRC.
However, since it is the first year of MTD, HMRC have announced that a lenient approach will be considered for businesses who are doing their best to comply. Sanctions will not be avoidable in cases of deliberate non-compliance.
In order to comply to MTD for VAT, businesses with a taxable turnover of over £85,000 are now required to submit their returns digitally and quarterly. To find out how we can help you become compliant click here.
1.2 million businesses were due to sign up to MTD before the August 7th payment deadline. Nearly a million businesses registered before the deadline and are now complaint under the new digital recording rules.
What do I do if I have missed the recent MTD deadline?
If you have missed the August deadline don’t worry as you are not the only one! HMRC are not going to penalise you this time.
Businesses who file quarterly and missed the deadline will receive a letter and this will allow you to see what actions you need to take moving forward. If you have not yet received a letter call HRMC or contact us now.
If you are a business now getting ready for the filing deadline on 7th of September. There are a few key things you need to consider when registering for MTD for VAT:
- If you are a Direct Debit payer, you should not sign up until your final non-MTD payment has been debited.
- You will not be able to sign up in the seven working days before this deadline if you pay using Direct Debit.
- Allow 72 hours for signing up to MTD.
- Sign up is not automatic.
Click here to find out more on how to sign up for MTD for VAT.