Give us a call on 01225 300 490

Making Tax Digital for VAT

    • Share this article:

    HMRC has opened the Making Tax Digital for VAT (MTDfV) public pilot. However certain VAT-registered businesses (around 3.5% according to HMRC) with more complex requirements will be deferred from being subject to MTD for six months.

    Essentially, the public pilot is now open to sole traders and companies using standard VAT accounting. This applies whether returns are done monthly or quarterly provided they are up to date. Those signing up for the pilot will be required to keep their VAT records digitally from the first day of the period covered by their next VAT Return and submit their return using the appropriate software.


    HMRC intends to roll out further pilots for partnerships, those that trade with the EU and users of the Flat Rate scheme as set out in the timetable.



    Late 2018

    Private testing begins with partnerships, those customers that trade with the EU, and users of the Flat Rate Scheme.

    Late 2018

    Open to other sole traders and companies who are not up to date with their VAT and businesses newly registered for VAT that have not previously submitted a VAT return.

    Early 2019

    Open to partnerships and those taxpayers that trade with the EU.


    Making Tax Digital for VAT is to be introduced from 1 April 2019. However, HMRC has announced that the mandated implementation has been deferred until 1 October 2019 for certain taxpayers:

    • Trusts
    • 'Not for profit' organisations that are not set up as a company
    • VAT divisions
    • VAT groups
    • Public sector entities required to provide additional information on their VAT return (Government departments, NHS Trusts)
    • Local authorities
    • Public corporations
    • Traders based overseas
    • Those required to make payments on account (very large traders)
    • Annual Accounting Scheme users.

    Pilot testing for these groups is expected to open in Spring 2019. For help with MTD please contact us.

    Internet links: GOV.UK MTD overview MTD timeline

    Xero Accounting

    Try it today