HMRC has published an updated sign-up timeline for organisations that had their start date for Making Tax Digital (MTD) deferred to this month.
In autumn last year, the mandatory compliance date for digital VAT filing was deferred to 1 October 2019 for charities that are either unincorporated or a member of a VAT group registration.
These charities are required to join MTD and submit their VAT returns using the new service for their first VAT period which begins on or after 1 October.
Following representations from the Charity Tax Group (CTG), HMRC has issued guidance for these organisations on the timeline for signing up to MTD.
It gives the time window in which different organisations can sign up, and how a charity’s chosen payment method will affect sign up times.
CTG has warned in a briefing note that charities will need to have signed up to the service, begun keeping their records digitally, and set up their MTD compliant software to send information to MTD, in good time before they file their first return.
However, once a charity is signed up to MTD, its returns must be submitted using MTD compatible software, so charities should not sign up until ready and the correct systems are in place.