The U.K. will delay phase two of its plan to require electronic filings of value-added taxes to give companies hit by the new coronavirus more time to prepare.
The program, known as “Making Tax Digital,” would make filing value-added tax invoices in real time mandatory for thousands of companies.
- Phase one of the program, launched in April 2019, provided businesses with what Her Majesty’s Revenue and Customs dubbed a “soft landing” into the program.
- The second phase of the program was set to come into effect in early April but will be postponed until April 2021, HMRC told Bloomberg Tax Monday.
- “We understand that the impact of COVID-19 is creating extremely difficult times for all, and we are committed to helping in every way possible all those businesses facing unprecedented challenges,” a spokeswoman for HMRC said.
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