Making Tax Digital is delayed !

Making Tax Digital for Businesses

HMRC has announced a new timetable for Making Tax Digital. That is a huge relief for all businesses who now will get more time to adapt to the new era of digital reporting.

There were many concerns regarding the timescale of implementing the changes, especially quarterly reporting. As a result the government announced an amendment to give small businesses more time to prepare. That will also allow HMRC to check the system.

  • From April 2019 the businesses with the turnover above the VAT threshold will have to start using Making Tax Digital and provide quarterly updates to HMRC only for their VAT. Most noteworthy, reporting for other taxes will not be compulsory.

 

  • Those businesses below the VAT threshold who have voluntary registered for VAT will be able to choose to use the system voluntarily. They will be able to do opt in to join Making Tax digital for Business. HMRC will give them a choice to raport quarterly.

 

  • The government wants to make sure that the system works well before widen the scope of MTD beyond the VAT. The earliest date for that will be April 2020. This will ensure that HMRC will fully test the system.

Making Tax Digital will build on this by integrating digital record-keeping to provide a single, easy process. Quarterly updates will be generated and sent directly from the software that the companies use to keep their books.

HMRC wants to deliver a modern digital tax system to support all businesses with getting their tax right and also keeping better control throughout the year.

Give us a call to get help with a right solution for your business

Catherine Machalinski ACMA

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