The Low Incomes Tax Reform Group (LITRG) has criticised the absence so far of any detailed guidance from HM Revenue and Customs (HMRC) about VAT exemptions. Most VAT-registered businesses are set to be subject to new rules to keep digital records and use software to file their VAT returns, but not all.
It is only 100 days before these making Tax Digital rules come into force, but while it is clear to most people that the taxable turnover threshold of £85,000 marks the point at which digitisation becomes mandatory, the LITRG noted that some may be excused on grounds such as age, disability or remoteless of location. However, the LITRG noted, it is not clear who might quality for an exemption.
Head of Team at LITRG Victoria Todd said, “We are very concerned that HMRC have not yet published any detailed information as to how exemption from Making Tax Digital for VAT may be obtained, with the start date so close." She added that the group would like to see some "specific guidance" being provided to those calling the HMRC helpline.