Missed the digital VAT deadline? What HMRC needs you do now
Businesses who have been frantically trying to get over the finish line for the first digital VAT submission but just fallen short can breathe a sigh of relief.
Why? HMRC has spoken out about the consequences for those who have failed to get everything done by 7 August and it’s going to alleviate the concerns of many expecting bad news.
HMRC’s MTD for Business Customer Readiness & External Stakeholder Team, has sent an email, which essentially says businesses will be allowed to use the previous portal system, which is still active for those organisations who are currently exempt from the initial implementation phase.
The email reminded businesses who pay by direct debit that the sign-up window has closed for the 7 August.
Sent to agents/accountants, the email stated: “Do not worry, we won’t penalise them (businesses) this time, so file the old way and come back when the DD has been collected to sign up in time to file the next return.
“Although we will not penalise them (businesses), they will receive a letter from us telling them that they missed the deadline and asking them to take action.”
While this is good news, it comes with a health warning regarding the potential for complacency.
If your business was among those who failed to make the cut, you could think ‘why bother rushing then?’ to get signed up in time for the next deadline.
Although HMRC has stated for a while it will operate a soft landing to the new rules, it has also stressed that it will not penalise firms doing their best to comply. So, simply taking no action, being lazy or complacent won’t cut it.
And the best way to get fully on board with MTD for VAT and not worry anymore about compliance? It’s online bookkeeping software that is MTD compatible, capable of communicating with HMRC in the required way.
For that, we’d ask you to look no further than KashFlow, which entirely meets the MTD for VAT requirements, ensuring you can:
· Keep and preserve digital records
· Create a VAT return from these digital records
· Communicate and link up directly with HMRC, meaning your data goes straight to right place every time
· Reduce the time spent searching through files by keeping your books structured, simple and in one place
In summary, businesses may escape unscathed from a missed deadline this time around but that won’t be the case for long. So, why not get your digital VAT solution in place sooner, rather than later, to avoid further headaches and stress about the next big deadline when it comes around.