HMRC extends VAT pilot
HMRC have announced the further opening of the MTD pilot.
Following the opening up of the Making Tax Digital (MTD) VAT pilot to partnerships and Flat Rate Scheme users shortly before Christmas, HMRC has now widened the pilot to all taxpayers who will be mandated to use the MTD service from April. HMRC has noted that this marks a significant milestone towards its ambition to become one of the most digitally advanced tax administrations in the world.
HMRC has also noted that the pilot is progressing well - over 3,500 businesses have already joined and HMRC have seen a dramatic increase in daily take-up from around 10-20 a day when the pilot first opened, well over 100 a day, with the number of daily sign-ups continuing to grow.
HMRC want as many eligible businesses as possible to join the pilot ahead of the mandation of the service in April. Increased pilot participation will allow more businesses to get used to the service before they are mandated to use it as well as giving HMRC assurance that the service works for a range of different business types. It will also give HMRC the confidence that experience of the MTD service, and the support HMRC put in place around it, matches expectations. Further details from HMRC can be found in the updated guidance for businesses, updated guidance for agents and the stakeholder partner packs on GOV.UK.
HMRC have also opened up the pilot to VAT groups from 10 January 2019 to allow them to start testing the service and will continue to provide updates as they open up the pilot to the remainder of the population who are mandated to join from October.
Should members have comments that they wish to have raised with HMRC please contact the ICAS tax team.
