Taxation: Electronic Government

Treasury written question – answered on 12th February 2019.

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Photo of Alex Sobel Alex Sobel Labour/Co-operative, Leeds North West

To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of delaying the introduction of Making Tax Digital.

Photo of Mel Stride Mel Stride Financial Secretary to the Treasury and Paymaster General

The Making Tax Digital (MTD) VAT pilot service is already open to all businesses that will operate MTD from 1 April.

Businesses and accountants are making preparations for the introduction of MTD, and thousands have already joined the pilot on a voluntary basis to test the service before they are mandated to use it. Most businesses will not need to submit their first VAT return through the new service until August at the earliest. Recognising the transitional issues that may arise, for the first year penalties will not be issued for late filing, only for late payment.

HMRC is writing directly to all businesses affected by MTD and will continue to increase communications activity in the lead up to April through a number of channels.

In October, the Government announced a 6 month delay for those customers with the most complex requirements, to ensure there is sufficient time for testing the service with them in the pilot before they are mandated to join from 1 October 2019.

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