HMRC has informed Sovos that it is extending the soft landing period for MTD digital links until 1 April 2021, for all taxpayers. The effect of this is that businesses will now have until their first VAT return period starting on or after the 1 April 2021 to have digital links in place. Our understanding is that this change does not replace or remove the facility that HMRC has offered for businesses to apply for a direction extending the soft landing period for up to a year. An issue we previously covered here.
HMRC is expected to issue an official announcement shortly.
