New timetable for Making Tax Digital
Ministers have set out the next steps for the Finance Bill and the new timetable for Making Tax Digital.
Following concerns raised the government has now announced that small businesses and landlords will now be able to move to the new digital system for keeping tax records at a pace which best suits them.
Under the new 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
Making Tax Digital will be available on a voluntary basis for the smallest businesses, and for other taxes. Businesses and landlords with a turnover below the VAT threshold will be able to choose when to move to the new digital system.
Businesses will not need to provide additional information to HMRC during this initial phase other than their normal quarterly VAT returns. Businesses and landlords will have at least two years to adapt to the changes before being asked to keep digital records for other taxes.
Changes to VAT reporting will come into effect from April 2019. From that date, businesses above the VAT threshold have to provide their VAT information to HMRC through Making Tax Digital software.
To see more about the online software available and how we can help, please click the following link: –
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