Towards the end of last week, HMRC confirmed the new timeline for Making Tax Digital (MTD).
Following the snap general election in June 2017, clauses relating to MTD were dropped from the Finance Bill 2017, leaving both accountants and businesses uncertain as to when, and even if, MTD would come into force.
This latest update confirms that MTD will definitely be coming into force, but also that HMRC have listened to the concerns of businesses and accountants around the pace of the change, and therefore delayed its arrival.
Under the new timetable, only businesses with turnover above the VAT threshold (currently £85,000) will have to keep digital records (for VAT purposes only) and will 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.
However, MTD will be available on a voluntary basis for the smaller businesses, meaning that those with turnover below the VAT threshold will be able to choose when to move to the new digital system.
This will ensure that all businesses have time to adapt to the changes.
If you have any queries regarding MTD please do not hesitate to get in touch: email@example.com