The Government has listened to concerns raised by businesses, accountants and professional bodies about the planned introduction of MTD from 2018, and their new timetable is as follows:
– only businesses with a turnover above the VAT threshold (currently £85,000) will have to keep digital records, and only for VAT purposes;
– they will only need to do so from 2019;
– businesses will not be asked to keep digital records, or to update HMRC quarterly, for other taxes until at least 2020;
This means that the first businesses to be affected by MTD will be those already submitting quarterly VAT Returns, and other businesses including landlords will have a longer reprieve until they have to implement digital tax reporting systems.
In an extract from their website, HMRC state: ‘There is widespread agreement that Making Tax Digital for Business is the right approach for the future. However a number of concerns about the pace and scale of change have been raised. As a result the government has announced that the roll out for Making Tax Digital for Business has been amended to ensure businesses have plenty of time to adapt to the changes.’
We are pleased the Government has made this decision, and further information will be made in the Government’s Summer Finance Bill due to be released in September 2017.
We will keep our clients informed should any changes affect them.
In the meantime, if you have any questions about MTD please do get in touch.
Written by Shane White
Find out more about Shane White