No Brexit worries for Making Tax Digital, says HMRC

According to Economia, HMRC moves to assuage fears a no deal Brexit would scupper its Making Tax Digital (MTD) for VAT roll-out You can read the original article here.

No Brexit worries for Making Tax Digital, says HMRC

It had been suggested that the Revenue would have to delay the scheme, scheduled to launch on April 1, for more than a million VAT-registered businesses, if the UK was to crash out of the EU without a deal. 

However, in a letter to the Financial Times, HMRC deputy chief executive Jim Harra, wrote, “The truth is our system is already live and by the end of February we’ll have written to every affected business encouraging them to join the thousands of others who have registered.” 

Harra added, “HMRC already has a system to handle customs declarations in the event of a no-deal exit and is rolling out a new customs declaration service alongside this. In August 2018 it was announced that postponed accounting for import VAT will apply to all imports in the event of a no-deal exit, so businesses will not experience a cash flow disadvantage from changes to VAT rules.” 

Reports surfaced in June last year which suggested that Brexit would cost the Revenue “billions” of pounds by delaying a significant number of digital projects, including MTD. 

A House of Lords economic committee recently found that MTD for VAT will cost far more than was predicted in HMRC’s impact assessments. It criticised the tax authority for having “inadequately considered the needs and concerns of smaller businesses”.

The BCC recently urged the government to delay MTD until April 2020, citing low levels of awareness and its proximity to Brexit.

As a reminder, Powered Now is MTD ready. You can submit your VAT returns and connect to HMRC. Powered Now is easy to use and works on your mobile, tablet, Mac and PC. To arrange a free demo to learn how easy your VAT return could be just get in touch.

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