Of all VAT-registered businesses in the UK, almost three-quarters (74%) have enrolled for Making Tax Digital (MTD) before the second stagger deadline earlier this month.
According to data provided by HMRC, over 230,000 mandated businesses successfully signed up for MTD before the 07 September 2019 deadline.
And, nearly all (94%) businesses submitted VAT returns before both the first and second stagger deadlines, in compliance with the new legislation.
The Revenue will write to around 80,000 VAT-registered firms who missed the stagger-two deadline to remind them of their obligations.
However, those businesses are unlikely to be penalised as HMRC has opted to take a gentle approach to penalties until 01 April 2020.
HMRC has been sending reminders to those stagger-one businesses that failed to sign up prior to their 07 August 2019 deadline, the result being that a further 5% of VAT-registered businesses have joined the scheme.
To date, more than 80% of mandated stagger-one businesses are now signed up to MTD for VAT and actively using the service, with HMRC estimating that around 60% of stagger-three firms have signed up before the next deadline of 07 October 2019.
We can help
If you have yet to sign up for MTD for VAT or have already signed up and need advice on MTD returns, give us a call today on 01483 205850.