Apply for more time for MTD digital links

Making Tax Digital

Your accounting systems must have digital links in place for VAT periods starting on or after 1 April 2020 (or 1 October 2020 for deferred businesses).
This should be for the transfer or exchange of data between software programs, products or applications used as functional compatible software.
Applications should be submitted as soon as possible and before the end of the current 12 month “soft landing” extension.
HMRC is likely to grant a direction in only a small number of places. This will mainly be for businesses with complex or legacy IT systems. These require a longer period to put digital links in place.
HMRC will consider specific direction applications outside of the soft landing period where more time is needed to comply with the digital links requirement. For example if your company purchases another business.

What is a Digital Link?

A digital link is a data transfer or exchange within and between functional compatible software. Put simply, digital links enable software programmes to communicate with each other and HMRC, so your returns can be filed digitally.

A digital link is a way for two pieces of software that work together to send and receive data. To put it simply, digital links let software programmes talk to each other and to HMRC, which means that you can pay your taxes electronically.

The Advantages of Making Tax Digital

HMRC’s plans to digitise the tax system are supported by Making Tax Digital. It will:

  • Make it simpler for people and companies to pay their taxes on time
  • imply that clients can use software to link tax management with a variety of corporate operations;
  • digital records transmitted straight to HMRC

Because of the following factors, it will help lower the amount of tax wasted to avoidable errors:

  • increased digital record accuracy;
  • extra assistance included in many software programmes;
  • and digital records transmitted straight to HMRC.

To find out more, please contact us on 020 7112 8300 alternatively you can email