Businesses will be relieved to hear that there will be no penalty for missing first filing under the Making Tax Digital legislation in case they missed the deadline for signing up for MTD, as long as they file the VAT return on time using the old HMRC portal.
This information was provided in an email to tax agents from HMRC’s MTD for Business Customer Readiness & External Stakeholder Team, sent 1 August. The full statement says:
“If you have clients that pay by direct debit the sign-up window has closed for the 7 August. Do not worry we won’t penalise them this time, so file the old way and come back when the DD has been collected to sign up in time to file the next return. Although we will not penalise them, they will receive a letter from us telling them that they missed the deadline and asking them to take action.”
This will be a big comfort to the thousands of tax agents & clients who have been waiting for the confirmation of MTD sign-up to arrive from HMRC. This email is supposed to be issued within 72 hours of a successful MTD sign-up. However, there is currently a delay in sending out these emails so it may take a little longer than 72 hours to receive the confirmation.