VAT News

HMRC Postpones Phase 2 Making Tax Digital Till April 2021

HMRC Postpones Phase 2 Making Tax Digital Till April 2021

April 1 2020, was meant to be the date that HMRC launched phase II of making Tax Digital across the UK. However, due to COVID-19, they have made the decision to postpone the rollout by one year to April 1 2021. 

This means that businesses will have until their first VAT return period starting on or after 1 April 2021 to put digital links in place. 

In their communication, HMRC acknowledged that COVID-19 has presented UK businesses with unprecedented challenges. Therefore HMRC is allowing all MTD businesses more time to put in place digital links across all parts of their accounting process and compatiable software.

About Making Tax Digital Phase 2: 

MTD Phase 2 dictates that all manual involvement in the VAT return filing process ceases and the flow of data from the accounting system to HMRC must be completely digital. The so-called digital journey of this data can be made using Digital Links. Ultimately, it means no one should be copying and pasting data – it should all be completely automated. 


Read More on Making Tax Digital: 


Making Tax Digital: Are you Ready for Phase 2? 

Making Sense of Making Tax Digital
What is Making Tax Digital?

Related articles

HMRC: No VAT on e-Publications for UK Citizens as of 1 May 2020

HMRC has scrapped VAT completely off e-books and e-publications from 20% down to 0%. In an effort to make reading more accessible for the UK public while in self-isolation due to the Coronavirus, HMRC fast-tracked the motion and implemented it seven months ahead of schedule. 

Read more
COVID-19 VAT tips for businesses

These COVID-19 VAT tips for businesses will help companies around the world boost liquidity in times of economic challenges. Learn how to harness VAT refunds and compliance.

Read more
COVID-19 VAT Cashflow Tips (Part Two)

COVID-19 is affecting business in ways no one thought possible. In order to free yourself from the burden of cashflow worry, we’re trying to do our bit to advice you on ways you can inject income into your bottom line.

Read more