Making Tax Digital – An update
HMRC has announced significant changes to the roll-out of its Making Tax Digital scheme, which was due to go live from April 2018.
Following feedback and concerns about the broad scope and short timescales from various bodies, the scope and timetable have now been pared back
- Only businesses with a turnover above the VAT threshold 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 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 this is the right decision as it is essential that businesses and the accounting industry are given adequate time to adapt to new methods of compliance record-keeping.