Making Tax Digital Tracker

Dave Wright, Tax and Accountancy Publisher

February 13, 2019

The Spring 2019 update to Making Tax Digital Tracker is now live for subscribers to UK Tax.

The following points have been added or updated.

Section:

A1:

A1.3.1: Add deferred businesses to timetable for joining MTD

A1.3.2: New para added on deferred businesses and cross-references back to this section inserted at relevant points in entire work

A1.4.1: New commentary on estimated costs of MTD for businesses

A2:

A2.1.3: new tasks added to PTA

A2.2.2: Rewrite of answer to “Do I need a BTA to comply with MTD” - answer is no , but..

B1:

B1.2.2 & B1.2.3: new commentary regarding manual invoices

B1.2.6: new detail on what to record from sales invoices

B1.2.11: Detail added about retail schemes

B1.3.7: New Q & A about continuing use of spreadsheets

B1.4.5: New Q& A about cloud-based software

B1.5: More detail about specific HMRC ‘directions’ and letters to taxpayers

B2:

B2.1: revised guidance on whether HMRC will produce software

B2.1.1 - B2.1.3: updates on software approved by HMRC

B2.3.2: additional guidance for deferred businesses

B2.3.4: New Q&A on making adjustments to the VAT figures

B2.5.2: New Q&A on converting to MTD-compatible software

B2.6.2: new detail on who can join the pilot and when

B3:

B3.1.1: detail added about deferred businesses

B3.1.3: clarification of turnover test

B3.3: example of when exemption letter may be sent

B3.3.13: clarification of exemption for deferred businesses

B3.3.14: More detail on how VAT return is filed if business is exempt

B3.3.16: more detail on deferral for not-for profit organisations

B3.5.1: further detail on how non-mandated businesses will file VAT return

B3.5.2: New guidance and example on closing VAT portal

B4:

B4.2.4: New guidance and example on closing VAT portal

B4.7.1: guidance on deferral for annual accounting scheme users

B4.7.3: detail added on cross -references in VAT records

B4.7.6: guidance on petty cash records

B4.8.1: update on API for VAT groups

B4.8.4: update on soft landing periods

B5:

B5.1.2 : start dates for new penalties and for deferred businesses adjusted

B5.2 : New guidance on penalties which can apply on failure to engage with MTD