HMRC Delays Making Tax Digital
HMRC have announced that the Making Tax Digital scheme, which was due to go live April 2018, has been postponed to a different timescale with new rules.
This is due to feedback and concerns, the scope and timetable have now been altered after disputes about the broad scope approach and short timescales from a variety of sources, external to HMRC.
Below are the latest announcements from HMRC regarding Making Tax Digital;
- Only businesses with a turnover above the VAT threshold must 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 update HMRC quarterly for other taxes until at least 2020, instead of 2018 as originally proposed.
- Small businesses will be able to file digitally on a voluntary basis for other taxes.
We believe that it is crucial that businesses and the accounting industry are given enough time to adapt to new methods of digital record keeping. Furthermore, any rules should also improve business and accountant productivity and not just satisfy HMRC’s own agenda.
This additional time to accept and engage new digital processes for businesses and accountants is welcomed. We are glad that HMRC has responded to the many concerns raised, as this is the largest change to the accounting industry within the last 30 years.
If you would like any additional information regarding MTD, please do not hesitate to contact us on the details below.