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HMRC extends Make Tax Digital (MTD) ‘digital links’ deadline until 2021 due to Coronavirus outbreak.

HMRC have recognised the pressures that has been placed on businesses during these times of uncertainty so have implemented and extension to MTD to help to ease the burden....

Updated 2nd April 2020

Many businesses across the country will have spent the past 12+months preparing systems and software to meet the MTD deadline however for many the COVID-19 pandemic has put a halt on getting everything set up and ready to go on time. 

HMRC have recognised this struggle and has announced that businesses participating in Making Tax Digital for VAT now have an extension until 1st April 2021 to meet the requirement to have ‘digital links within their recordkeeping. This is part of the measures put in place to ease the burden,in light of the COVID-19 crisis.

Under MTD for VAT the required digital records can be held within more than one piece of software or spreadsheet, however, there must be a digital link between them; the data cannot be transferred manually between software products. Participants were given a year from the launch of MTD to have these digital links in place, previously giving organisations until either 1st April or1st October 2020, depending on their original MTD start date.

Below is an extract from the HMRC correspondence regarding the extension period:

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.

Here’s a link to the HMRC guide to MTD

If you require assistance with getting ready for the 2021 deadline, don’t hesitate to get in touch with us.

If you require any help navigating your way through this all then please do get in touch, we are here to help. 

Disclaimer: The information contained in this article is intended to be a guide and is not intended to be exhaustive. No action should be taken on the basis of information contained herein without obtaining the necessary advice. No responsibility can be accepted for loss or damages occasioned to any person acting or refraining from acting as a result of the material contained herein.