As you probably know, most ordinary businesses have been mandated to start ‘Making Tax Digital’ as of 1 April 2019. 

This includes subsidiary companies of the NHS, which are not considered to be NHS bodies themselves.  Last October, HMRC wrote to Trusts to inform them that an extension would be granted until 1 October 2019. HMRC are now writing to Trusts to confirm that MTD has been delayed further for the NHS, confirming that VAT returns should be sent in the same way for now, via the GIANT (Government Information and NHS Trust) system.

The reason for the delay is to coincide with the potential reform of the VAT refund rules for central government (as announced in the Spring budget 2019). It’s possible that following the review, VAT is required to be reported differently and therefore it seems sensible to delay until there is a further update in this respect. An update is expected in late summer to formally extend the period, before MTD becomes mandated for the NHS.

If you do have any questions or concerns, please don’t hesitate to contact one of our NHS VAT team on 01732 868 266 or by clicking here.