With a five-day turnaround, taxpayers must make sure they
allow ample time for setting up a direct debit instruction for a new Making Tax
HMRC has stated that the process for setting up direct debits as the first deadline for quarterly VAT payments will occur this month for anyone registered for VAT higher than the £85,000 threshold.
The initial launch was heavily criticised due to
confusion over registration, as well as deadlines and filing requirements, with
HMRC using gov.uk to communicate, with current figures showing that
registration levels are somewhat low.
HRMC chief executive Jon Thompson wrote a letter last
month that defended the registration process, as well as direct debits.
The Association of Tax Technicians (ATT) warned in April
that if businesses didn’t plan their enrolment into the service and were late
to make VAT payments, they could face penalties.
HMRC were heavily criticised by MPs with businesses experiencing long wait times on the VAT helpline, as well as getting disconnected after 10-minute hold times. This came after IT maintenance problems that caused filing of VAT returns to take longer than a day, and the software being inaccessible to people with disabilities.
Once an account is activated, any VAT payer who is pre-registered for the MTD for VAT service prior to the mandatory start date of 6 April 2019 is required to submit VAT returns online. If you delayed signing up, then the earliest MTD mandatory reporting only begins this month.
If you are a monthly VAT payer then it’s possible you could use the auto-filing system so that you don’t have to make payments on account and submit quarterly VAT returns, as long as you complete form VAT 484.
It should be noted, however, that once registered for MTD,
businesses are unable to withdraw and must continue to file returns via that
While HMRC have been developing the system for a long
time, the issues around MTD are clear, with a huge proportion of eligible
businesses still not registering for the service.
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