01 Apr 2020HMRC will delay 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.'