HMRC has announced that it is allowing a small number of VAT registered entities to defer mandation from the requirements of Making VAT Digital (MVD) by six months. They include, VAT groups, annual accounting scheme users and public sector entities.

A timetable for MVD pilots have also been announced.

  • VAT registered business, who are trading above the £85,000 VAT registration threshold must, for VAT returns due from 1 April 2019, start using MVD 'functional compatible software' which is capable of directly filing the nine box VAT return with HMRC.
  • In the initital stages of MVD HMRC simply wants you to submit a VAT return via your software and not by using HMRC's VAT portal. Further on your software will 'talk' to HMRC and it will be used to submit transactional data.
  • For full requirements and details of penalties see our MVD guide.

Following the announcement, taxpayers who are allowed to defer entry into MVD until 1 October 2019 are as follows:

  • Trusts
  • 'Not for profit’ organisations that are not set up as a company,
  • VAT divisions and VAT groups
  • Those public sector entities required to provide additional information on their VAT return (Government departments, NHS Trusts), local authorities
  • Public Listed companies (PLCs)
  • Traders based overseas
  • Those required to make payments on account
  • Annual accounting scheme users

Who needs to join MVD and when?

Run through all the different exclusions and the deferral conditions with our MVD tool: who has to join?

MVD Pilots

The pilot requires you to use MVD compatible software to record your sales and purchases. 

HMRC's MVD pilot is currently open to sole traders and companies who have simple VAT accounting. 

Anyone with a default surcharge in the last 24 months cannot join the pilot until the end of October 2018.

VAT scheme users (Flat rate, etc), anyone on the above deferred entry list, partnerships, EU traders etc will be able to join the pilot until late 2018/early 2019.

Filing exemptions and exclusions

Those who are digitally excluded by reason of age, disability, location etc. See MVD exemptions and case decisions


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