Making Tax Digital – Non Established Taxable Persons and VAT online

4 Eyes Ltd represents numerous international clients, acting as UK VAT agent, handling UK VAT registration and submitting returns on their behalf.

With effect from 1 April 2019, all UK VAT registered businesses trading above the VAT registration threshold have had to move to electronic record keeping and adopt software to submit future VAT returns.

With effect from 1 October 2019, HMRC are extending this requirement to non-UK companies also.

4 Eyes Ltd will use bridging software to enable its clients to submit VAT returns after the implementation deadline in each instance.

There has previously been confusion as to whether the extension to 1 October 2019 is automatic or not for non-UK registered businesses using a UK VAT agent – HMRC had advised that in this instance the 1 April date would apply unless the business received an extension letter, but when we then tried to register all our clients for MTD, we were unable to do so because the system will not currently recognise non-UK companies. As a result of the failure of the online system at this time to recognise non-UK companies, all non-UK businesses affected by these changes will have to wait until the system is changed to allow for this. For now, HMRC have now confirmed that the extension must de facto apply and that non-UK businesses may continue to use the current manual input system to complete their VAT returns.