MAKING TAX DIGITAL DELAYED UNTIL 2020


On 13 July 2017 HMRC announced that the government has listened to concerns and have agreed to delay Making Tax Digital (MTD) to give all businesses more time to prepare.

The reformed timeline for MTD is based around VAT, with businesses over the VAT threshold (currently £85,000) required to keep digital records only for “VAT purposes” from 2019.

Originally, it was proposed that sole traders, partnerships and those with rental income above the VAT threshold would have to begin quarterly reporting of accounting data from April 2018. This has now been postponed until at least April 2020.

Small businesses under the VAT threshold “will not be asked to keep digital records, or to update HMRC quarterly, for other taxes until at least 2020”.

While still supporting MTD, the Treasury have acknowledged that the timetable would not have allowed a smooth transition for small businesses. The change to the MTD timeline comes after the proposed plans were challenged by several MPs and accounting bodies.

Prior to this announcement, MTD would have been implemented from 2018 for businesses above the VAT threshold, while smaller businesses were expected to digitize their taxes from April 2019, a delay that was announced as part of the Spring Budget in March this year.

MAKING TAX DIGITAL DELAYED UNTIL 2020


On 13 July 2017 HMRC announced that the government has listened to concerns and have agreed to delay Making Tax Digital (MTD) to give all businesses more time to prepare.

The reformed timeline for MTD is based around VAT, with businesses over the VAT threshold (currently £85,000) required to keep digital records only for “VAT purposes” from 2019.

Originally, it was proposed that sole traders, partnerships and those with rental income above the VAT threshold would have to begin quarterly reporting of accounting data from April 2018. This has now been postponed until at least April 2020.

Small businesses under the VAT threshold “will not be asked to keep digital records, or to update HMRC quarterly, for other taxes until at least 2020”.

While still supporting MTD, the Treasury have acknowledged that the timetable would not have allowed a smooth transition for small businesses. The change to the MTD timeline comes after the proposed plans were challenged by several MPs and accounting bodies.

Prior to this announcement, MTD would have been implemented from 2018 for businesses above the VAT threshold, while smaller businesses were expected to digitize their taxes from April 2019, a delay that was announced as part of the Spring Budget in March this year.

MAKING TAX DIGITAL DELAYED UNTIL 2020


On 13 July 2017 HMRC announced that the government has listened to concerns and have agreed to delay Making Tax Digital (MTD) to give all businesses more time to prepare.

The reformed timeline for MTD is based around VAT, with businesses over the VAT threshold (currently £85,000) required to keep digital records only for “VAT purposes” from 2019.

Originally, it was proposed that sole traders, partnerships and those with rental income above the VAT threshold would have to begin quarterly reporting of accounting data from April 2018. This has now been postponed until at least April 2020.

Small businesses under the VAT threshold “will not be asked to keep digital records, or to update HMRC quarterly, for other taxes until at least 2020”.

While still supporting MTD, the Treasury have acknowledged that the timetable would not have allowed a smooth transition for small businesses. The change to the MTD timeline comes after the proposed plans were challenged by several MPs and accounting bodies.

Prior to this announcement, MTD would have been implemented from 2018 for businesses above the VAT threshold, while smaller businesses were expected to digitize their taxes from April 2019, a delay that was announced as part of the Spring Budget in March this year.