MTD deferral for GIANT users announced
When Making Tax Digital (MTD) was made mandatory for those companies whose sales were superior to GBP 85.000 back in April 2019, business had to start keeping digital business records and sending returns through MTD compatible software. Nonetheless, there was a minority group(1) that was deferred to 1 October 2019. This was because HMRC wanted enough time to test the service before obliging them to join.
Now, part of this group, specifically the so called GIANT (Government Information and NHS Trust) has been given a new deferral date beyond 1 October. This further deferral is due to a potential reform to VAT refund rules for central government, with the aim of reducing administrative burdens and improving public sector productivity(2).
In the meantime, those GIANT users will have to submit VAT returns as they do now.
As soon as we receive updated information we will be informing you accordingly.
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