MTD Deferral

MTD Deferral

HMRC have confirmed that a small group of businesses with complex requirements have an MTD deferral for 6 months.

As a result of their MTD deferral, they don’t need to comply with the MTD rules until periods starting on or after 1 October 2019.

Which businesses does the MTD deferral apply to?

The following business types are deferred from MTD:

  • Not for profit organisations (includes some charities)
  • Trusts
  • Businesses who use the Annual Accounting Scheme
  • Public sector entities (includes NHS Trusts)
  • Local authorities
  • Traders located overseas
  • VAT Groups and VAT Divisions
  • Businesses required to make payments on account

HMRC letters

Businesses which qualify for the MTD deferral will receive a letter from HMRC.

The letter has legal standing, but it must be retained by the business.

MTD deferral letter received in error

Should a business receive a deferral letter in error, HMRC have confirmed that the letter is valid. This is irrespective of the business type, even if you don’t qualify via one of the above categories.

No letter received

Businesses which believe they do qualify but have not received a deferral letter should contact HMRC.

The phone number is the VAT helpline, which is 0300 200 3700.

Also see MTD Exemptions

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