Making tax digital for VAT for academies

6th February 2019

Making Tax Digital for VAT will apply to VAT returns starting on or after 1 April 2019 for some academies, but not all academies will be affected: 

  • Academies which are not VAT registered will not be affected by MTD for VAT and will continue to make their VAT 126 claims as at present.
  • Academies which are VAT registered as a single entity but whose taxable supplies (i.e. standard and zero rated supplies, but not including exempt supplies such as lettings) are below the current VAT registration threshold will not be required to file returns digitally, but should get this confirmed by HMRC.
  • Academies which are registered for VAT as part of a VAT group (usually with a trading subsidiary) will have MTD for VAT deferred until 1 October 2019. These academies should already have had confirmation of the deferral from HMRC but if not they should check with HMRC.
  • The group which will be affected from 1 April is VAT registered academies with taxable supplies over the registration threshold which are not in a VAT group. 

These academies will need to be able to submit VAT returns for periods starting on or after 1 April direct from software using the new HMRC digital platform. This may require an update to current software or the use of separate bridging software.

 Please speak to your usual Bishop Fleming contact to discuss the impact of this in more detail.

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