Changes to Making Tax Digital timetable will affect some housing associations

HMRC have recently announced there have been some revisions to the timeline for the implementation of Making Tax Digital.

There will now be a six month deferral in complying with the Making Tax Digital VAT reporting requirements for certain categories of businesses with 'complex requirements' – this includes organisations which are part of a VAT Group which includes a number of housing associations.

For the businesses affected by the delay, the first VAT return to be submitted via the Making Tax Digital compatible software will now be the return beginning on or after 1 October 2019.

HMRC has deemed that the following categories of business will be considered to have 'complex requirements':

• VAT Groups and VAT divisions;

• public corporations;

• overseas traders;

• businesses that are required to make payments on account;

• businesses on the annual accounting scheme;

• trusts;

• not for profit organisations that are not set up as a company;

• certain government departments;

• NHS Trusts; and

• local authorities.

For those businesses who are not listed in the above categories, there is no change to the planned introduction date of 1 April 2019.

The 12-month soft launch period in which HMRC will not impose any penalties where an organisation fails to meet the new making Tax Digital requirements, will still apply to those businesses with 'complex requirements'.

Keep checking the SFHA Finance Policy section for further updates.

David Cannon, Head of Compliance for housing associations at HMRC, will also be speaking at SFHA’s Finance Conference in November. You can book a place here: https://www.sfha.co.uk/whats-on/event-details/finance-conference---the-future-of-finance