LITRG urges HMRC to publish MTD for VAT exemption guidance

20 Dec 2018

The Low Incomes Tax Reform Group (LITRG) has called for HMRC to publish detailed Making Tax Digital for VAT (MTD for VAT) exemption guidance.

MTD for VAT is set to come into effect from 1 April 2019 for businesses which have a taxable turnover above the current VAT registration threshold of £85,000. As part of the initiative, firms must keep some records digitally, and must submit their VAT returns via an Application Programming Interface (API).

The LITRG stated that it is 'very concerned' that HMRC has so far failed to publish guidance on how someone might be able to claim exemption from MTD for VAT.

The Group said that without detailed guidance, some taxpayers may 'worry unnecessarily' as to how they will cope, and others could be left with 'very little time to prepare' if their application for exemption is turned down.

'We are very concerned that HMRC has not yet published any detailed information as to how exemption from MTD for VAT may be obtained, with the start date so close,' said Victoria Todd, Head of Team at the LITRG.

'HMRC has said that people should contact the VAT helpline to speak to an adviser if they think they should be exempt. We would like to see more specific guidance which explains what information and evidence HMRC will require from a caller, and what they can do if their application is turned down.'