This blog is the second of two looking at the report released by HMRC to update the public on Making Tax Digital for VAT and ITSA. In this post, we look at the ITSA service.

HMRC has released information for businesses related to making VAT payments between 20th March 2020 and 30th June 2020, allowing deferral of payments.

The soft landing period expires on April 1st 2020 for most UK VAT registered businesses, and the penalties system will be revised to bring it in line with Income Tax and Corporation Tax.

A recent survey carried out by CIOT and ATT has shown that a majority of businesses are spending more than HMRC’s predicted costs to implement Making Tax Digital for VAT.

The delayed Budget date has now been set for 11th March 2020. Read on for a round-up of expectations from experts around the web.

From April 1st 2020, most UK VAT registered businesses with a taxable turnover above the VAT threshold are due to come out of the soft landing period.

From November 1st 2019, the eligibility criteria for VAT grouping will be extended for unincorporated businesses subject to certain conditions.

HMRC have advised that some letters for “VAT Notice of Assessment of Tax” recently sent to Making Tax Digital customers were issued in error.

HMRC have issued an update regarding inaccurate SA302 calculations which were issued for 2017/18 for some Self-Assessment customers affected by exclusions.

You may have seen HM Revenue and Customs’ recent announcement that some businesses may qualify for an extended Making Tax Digital for VAT soft landing period.