Business owners who need special software for accessibility reasons when filing returns for Making Tax Digital (MTD) but are unable to find the right software, are eligible to apply to HM Revenue & Customs (HMRC) for a temporary exemption.
According to the Low Income Tax Reform Group (LITRG), the unavailability of suitable software products on the commercial market may constitute grounds for claiming a temporary exemption, until such time as suitable software becomes available.
As anyone who is registered for VAT will know, HMRC does not provide software for MTD for VAT but is working with the software industry to bring suitable products to market. However, there are currently only a handful of products that meet various accessibility needs.
The MTD for VAT rules allow those who have difficulty using digital tools due to age, disability, location or any other reason to apply for an exemption from the requirements, which are set out in full in HMRC’s detailed technical guidance.
As a spokeswoman for LITG said, while more accessible software providers have been added to the list recently, it is disappointing that there is not more software available to meet various accessibility needs now that MTD for VAT is mandatory.
She added that the group is therefore urging those with accessibility needs, who cannot find software that enables them to comply, to contact HMRC’s VAT helpline as soon as possible to request a temporary exemption.
In the meantime, any taxpayers affected by this should continue to file their VAT returns and pay any VAT due as they were doing before the new rules were introduced. They should also check HMRC’s software choices tool regularly to see whether any new software is available that might meet their requirements.
