We are pleased to report that a recent statement from the Treasury confirmed delays for the Making Tax Digital timetable. The new timeline shows that only businesses with turnover above the VAT threshold (£85,000) will need to keep digital records and will come under MTD in 2019.
Originally, it was proposed that sole trades, 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.
This is to allow small businesses and landlords time to move over to the new digital system at a pace that is right for them. MTD will be available on a voluntary basis for these businesses until it becomes mandatory – giving them the choice to join earlier and get a head start on the new process.
We are sure most of our smaller clients will welcome this news and the time delay will allow us all to prepare fully for the transition to MTD, as your accountant we will be continue to keep up-to-date with developments and also do some research for suitable options for software to recommend.
New Making Tax Digital Timetable – In Summary
- 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 small businesses, and for other taxes.