Making Tax Digital | 2019

In 2019 Making Tax Digital is still a huge focus for the NHS.  At our London VAT Conference in the Autumn, 90 per cent of the attendees still felt that they were not ‘MTD Ready’.  Liaison Financial staff are on hand to offer advice on ‘good digital housekeeping’ ahead of the revised October 2019 deadline for NHS organisations.

The reason for the new extended deadlines is around complex businesses and their differing VAT regimes.  Within the NHS in England, any subsidiary companies (Pharmacy, Estates, etc) will require to be ready by 1 April 2019, whereas NHS organisations including trusts will be entitled to the extension of October 2019. HMRC has issued a letter to all organisations that they consider qualify for the extension. If you have not received your letter, please contact HMRC at nhs.pbg@hmrc.gsi.gov.uk.

For entities that must implement MTD from 1 April there is a ‘soft landing period’ of one year where full compliance with all MTD requirements will not be enforced. HMRC is considering representations regarding how the soft-landing period will apply to those starting MTD from 1 October. HMRC has issued a letter to all organisations that they consider qualify for the extension. If you have not received your letter, please contact HMRC at nhs.pbg@hmrc.gsi.gov.uk.

For entities that must implement MTD from 1 April there is a ‘soft landing period’ of one year where full compliance with all MTD requirements will not be enforced. HMRC is considering representations regarding how the soft-landing period will apply to those starting MTD from 1 October.

Key MTD points to remember are:

• Capture transactions relevant to the VAT return
• Prepare the VAT return
• Send and receive information to HMRC using MTD software
• NO MORE MANUAL TRANSFER OF DATA!

It could take around six months to ensure that your accounts are in order and that you have the correct software or APIs in place to directly submit your VAT returns digitally in 2019.

We’re continuing to run Making Tax Digital webinars and our next one is on 18th March 2019 at 11am. Or, if you are a Liaison Financial customer, contact your advisor who can provide guidance on the relevant process for your NHS organisation or trust.