TaxCalc Blog

Charity Commission advice, MTD for VAT soft landing period extended and IR35 Delayed

Charity Commission

The Charity Commission has advised that charities due to submit an Annual Return imminently, but are unable to do so, can email them to request a filing extension.Coronavirus guidance for the charity sector provides information in response to the most commonly asked questions about operating during this period.

MTD for VAT soft landing period

In April 2019, HMRC granted a twelve-month ‘soft landing period’, to allow businesses, mandated into MTD for VAT, time to get their systems digitally linked. This period allows businesses to use ‘cut and paste’ to move data from one system to another.

HMRC has announced an extension to this period, to allow businesses more time to ensure digital links are in place between software being used for VAT accounting purposes. This means that all businesses will now have until their first VAT return period starting on or after 1 April 2021 to be fully compliant. The update can be found within section 4.2.1.3 of VAT Notice 700/22.

IR35 Delayed Until 2021

The government has decided to postpone the implementation of IR35 off-payroll changes for contractors working for private sector engagers until 1 April 2021. This means that contractors can continue working independently for private sector companies without the need to be registered within the company’s payroll scheme.

The government has confirmed that it is still committed to implementing IR35, and that the measures are a deferral designed to help protect contractors whilst coronavirus disrupts life in the UK.