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HMRC reached a significant milestone in the rollout of MTD with the first quarterly filing deadline for VAT – from 7th August, 370,000 (76%) VAT registered businesses above the threshold in stagger 1 had signed up.

According to HMRC, this is in line with its expectations, particularly given the public commitment that HMRC had made up front to taking a light touch approach to digital record keeping and filing penalties during the first year.

The focus during this period has been to support businesses moving to Making Tax Digital (MTD) to get it right and not to unnecessarily penalise businesses who are doing their best to make the transition.

HMRC is now writing to the businesses who did not sign up to encourage them to join as soon as possible and expect numbers to increase significantly in the coming weeks as a result. This was approached with monthly filers, whose first return through MTD was due by 7th June and 89% (40,000) of that group have now joined the service.

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Non-mandated customers are joining on a voluntary basis and sign-ups from businesses in stagger 2 (179,000) and stagger 3 (124,000) are accelerating in advance of their first submission deadlines on 7th September and 7th October respectively.

Those who have now switched to digital record keeping and signed up and submitted their first return have taken the biggest step in the MTD for VAT journey. Once businesses are set up and get used to the new way of doing things, they will be better placed to take full advantage of the benefits that the move to digital brings.

HMRC is pleased with progress but acknowledges that a small proportion of customers experienced issues when trying to meet their obligations. It apologises for the frustration and worry this may have caused.

Over the coming return deadlines HMRC will continue to monitor progress in the rollout of the VAT service and take stock of the lessons learned when considering the future direction of MTD.

To find out more about contracting please contact Jaime on 01442 795 100 or email

Why Thousands of Contractors Choose Dolan Accountancy

With over 25 years experience in contractor accountancy helping thousands of contractors, freelancers and the self employed, Dolan Accountancy has the specialist skills, reputation and credibility you can trust.

Working closely with our sister company, Contractor Umbrella, it means we can offer one low cost, fixed fee package at £105 + VAT. This gives you the flexibility of using both our Limited Company Accountancy Services and our award winning Umbrella Service, for one inclusive cost.

If you’d like to find out more about how Dolan Accountancy can help you and your business, please give us a call on 01442 795 100 or email or

We don’t believe in tiered packages or hidden extra fees, instead we aim to give you everything you need, including:

  • Free Company Formation – This is where it all begins. Once you have decided on an available name, we will form your company free of charge (if using our accountancy services) and it will be ready for you to use in as little as three hours
  • Free use of Contractor Umbrella – With IR35 Legislation changes we understand that sometimes you are required to contract via an umbrella company. We will keep your limited company ticking over, while you work margin free via our sister company, Contractor Umbrella
  • A Dedicated Accountant – Your accountant will be there for any company or personal tax advice that you require. We will never outsource work, even to internal teams
  • Free Access to FreeAgent – We offer all of our clients access to FreeAgent, free of charge
  • Free Business Banking – We have decided to waive our commission so our clients can use Tide free of charge for the first year
  • Unlimited IR35 Status Reviews – We will review all of your contracts for IR35 purposes and provide you with our professional opinion as to its status
  • Free Registered and Director’s Service Office Address – Sometimes you just don’t want your home address on display at Companies House. When you sign up to our accountancy services, we will offer the use of our address as an alternative
  • Your Business and Personal Taxation Needs – This includes Company Accounts, Director’s Personal Tax Return, VAT Returns, Payroll, Corporation Tax and Dividend advice, to name just a few

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