Business Round-up

HMRC extends MTD digital links deadline until 2021

HMRC has delayed the requirement to implement digital links for Making Tax Digital (MTD) due to the coronavirus (COVID-19) pandemic.

Under MTD, the required digital records can be held within more than one piece of software, however there must be a digital link between them: the data cannot be transferred manually between software products.

Participants were given a year from the launch of MTD to have these digital links in place, giving organisations until 1 April or 1 October 2020, depending on their original MTD start date.

HMRC has confirmed that all businesses now have until their first VAT return period starting on or after 1 April 2021 to ensure digital links are in place.

HMRC said: '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.

'Therefore, we are providing all MTD businesses with more time to put in place digital links between all parts of their functional compatible software.

‘This means that all businesses now have until their first VAT return period starting on or after 1 April 2021 to put digital links in place.'

Rise in contactless card payment limit

From 1 April the contactless card payment limit rose from £30 to £45.

The decision to increase the payment limit was reached following consultation between the retail sector and the finance and payments industry, and echoes similar increases in other European countries.

UK Finance stated that the change had been under consideration before the outbreak of the coronavirus (COVID-19), but was brought forward in order to support consumers during the pandemic.

Commenting on the increase, Stephen Jones, CEO of UK Finance, said: 'The payments industry has been working closely with retailers to be able to increase the contactless payment limit to help customers with their shopping at this critical time for the country.

'This will give more people the choice to opt for the speed and convenience of purchasing goods using their contactless card, helping to cut queues at the checkout.'

UK Finance said that, given the pace at which the change is being rolled out, the new payment limit will take 'some time' to be introduced across all retailers.

Consumers spending more than £45 will be able to make use of many other ways to pay, including Chip and PIN, cash and mobile payments.