HMRC is postponing the digital links phase of its Making Tax Digital initiative due to the coronavirus outbreak.

HMRC told Charity Tax Group (CTG): “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.”

The original deadline was this month for many organisations, while for deferred organisations (including most charities) this was October 2020.

CTG has said that a formal announcement on the new deadline will be made in due course.

The introduction of the new IR35 regime has also been delayed due to coronavirus.