August deadline. Businesses required to be registered which had a VAT quarter ended on 30 June 2019 should have submitted their figures to HMRC by 7 August using software compatible with Making Tax Digital (MTD). HMRC says that around 120,000 businesses didn’t comply risking a fine of up to £400.
No penalty. The good news is that HMRC doesn’t intend to fine those not using MTD when they should. An HMRC representative commented that in the short term “Our ambition is to help businesses moving to MTD to get it right, not to penalise them.” Therefore, initially HMRC will send letters to businesses which didn’t follow the MTD rules.
Tip. If you receive a letter related to the August deadline, don’t bury your head in the sand. If you don’t have the right software to tackle MTD, speak to an accountant for advice or to HMRC. The same goes if you’re required to submit your first MTD return by 7 September.