HMRC announces new Making Tax Digital timetable
HMRC has announced significant changes to the roll-out of its new digital tax strategy ‘Making Tax Digital (MTD)’. MTD was due to come into effect from April 2018 and will now be delayed following feedback from the accounting profession and parliamentary bodies.
The new timetable for Making Tax Digital implementation:
• Businesses with turnover greater than the £85,000 VAT threshold will need to keep digital records from April 2019, but only for VAT purposes
• Businesses with turnover greater than £85,000 will not be expected to report data quarterly to HMRC until at least April 2020
• Any businesses/landlords can voluntarily keep digital records and report data quarterly to HMRC from April 2018
• Businesses/landlords with turnover less than £85,000 will no longer be required to keep digital records or report quarterly to HMRC on a mandatory basis
It now appears clear that Making Tax Digital will not be scrapped but will instead be implemented in a more sensible timeframe.
As always we will stay close to the dialogue and keep you informed when there are any further developments to report.
If you would like more information, or would like to discuss your tax affairs in general, please contact our Tax Partners, Steve Crompton or Chris Barrington, on the details below:
Partner – Head of Tax
direct dial: 01942 292541
mobile: 07790 840394
direct dial: 01942 292505
mobile: 07730 436070