Analysis: latest on Making Tax Digital for VAT

30 Oct 2017

It’s now over three months since the announcements which put VAT firmly at the vanguard of the Making Tax Digital (MTD) programme. Our blog in July took a look at the challenges faced by businesses, advisers and HMRC.

Since that announcement, HMRC has published a Making Tax Digital for VAT: legislation overview, which provides more information around the basic requirements of MTD for VAT.

We have continued our engagement with HMRC to input and understand the specific requirements of MTD for VAT, and have updated our chart which identifies the ‘before and after’ position of the various elements of MTD and its impact on businesses.

Businesses mandated into MTD for VAT will need to keep digital records and submit VAT returns directly from software from 1 April 2019. To achieve that timeframe, HMRC are working to a ‘roadmap’, the key elements of which are:

September 2017 – enabling Finance Bill clause published (clause 62) and legislation overview published. Autumn 2017 – publish draft Regulations for consultation. Autumn - winter 2017 - 2018 – private beta testing of software commences. Spring 2018 – Regulations laid before Parliament. Spring 2018 – public beta testing of software. 1 April 2019 – mandation commences – first VAT return period commencing on or after 1 April 2019.

We continue to welcome comments from businesses and agents around the practical implementation of MTD, to help our discussions with HMRC, and please send any comments to technical [at]

Blog by Richard Wild, Head of Technical, Chartered Institute of Taxation