Since George Osborne announced the death of the annual Tax Return in his Budget speech in March 2015, the government has been planning to introduce MTD from April 2018. Under MTD all businesses and landlords would be required to make quarterly electronic submissions of basic accounting information to HMRC, starting with those whose turnover is above the VAT threshold (currently £85,000) from April 2018, extending the system to all businesses and landlords over a number of tax years.
However, the government’s plans were shelved at the end of April 2017 with the announcement of the General Election on June 8th. Opponents of MTD and the pace at which it was being implemented were hopeful that this represented a change of heart from the Treasury. The real reason, though, is that there was insufficient time to debate the MTD legislation in parliament before the House rose for the election.
We believe that after the election (and assuming there is still a Conservative government) the MTD plans will be revisited in the 2017 Autumn Budget – or even a 2017 Summer Budget. In light of this hiatus it is possible that the temporary shelving of this ambitious project will mean it is delayed by a year to April 2019, but one cannot be sure. Considering the investment and time put into the MTD project already it is certainly hard to see it being shelved permanently.
As soon as more information is announced we will review how all of our clients are affected and will be in touch with you directly.
In the meantime, if you have any questions about MTD please do get in touch.
Written by Shane White
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