HMRC announced a one-year delay to its enforcement of rules specifying the digital transmission of MTD for VAT data. The tax department explained, “we understand that the impact of COVID-19 is creating extremely difficult times for all, and we are committed to helping in every way possible all those businesses facing unprecedented challenges.
Therefore, we are providing all MTD businesses with more time to put in place digital links between all parts of their functional compatible software. This means that all businesses now have until their first VAT return period starting on or after 1 April 2021 to put digital links in place.”
The concession extends the soft landing period put in place for digital links when MTD was made mandatory for registered businesses above the VAT threshold last April.