Making Tax Digital delayed by HMRC
HMRC has confirmed the requirements for digital quarterly reporting are being stripped back to cover only VAT in a revised road map for Making Tax Digital (MTD).
As the new financial secretary to the Treasury, Paymaster General Stride inherited responsibility for MTD and has “listened to concerns raised by parliamentarians, in particular the Treasury Select Committee, businesses and professional bodies about the pace of change”, the Treasury said.
As a result, “All businesses and landlords will have at least two years to adapt to the changes before being asked to keep digital records for other taxes,” the Treasury said. Those below the VAT threshold will be able to choose when to move to the new digital system.
Under the revised timetable:
- 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
- Small businesses will be able to file digitally on a voluntary basis for for other taxes.
Those above the VAT threshold will have to start filing with MTD-compatible software from April 2019, but small businesses below the threshold “will not be asked to keep digital records, or to update HMRC quarterly, for other taxes until at least 2020,” the Treasury said.
For further details regarding today’s announcement please visit – www.gov.uk/government.
If you wish to discuss how this latest news affects you, or have any questions regarding ‘Making Tax Digital’ please do not hesitate to contact us.