01252 711244 |

Making Tax Digital update

18th July 2017

Making Tax Digital 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 concerns about the pace and scale of change from parliamentary bodies, businesses, accountants and software companies.

Key points:

  • Businesses will not be required to keep digital records to meet their VAT obligations until April 2019, and this will only apply to businesses with a turnover above the VAT threshold.
  • Businesses will not be required to keep digital records or provide HMRC with quarterly updates for other taxes until at least 2020.
  • Small businesses (below the VAT threshold) will not be required to use the Making Tax Digital for business system although they can do so voluntarily.

It is essential that businesses and the accounting industry are given adequate time to adapt to new methods of compliance record-keeping, and any new rules should also improve productivity. Increasing the productivity of UK SMEs plays a significant role in securing our economic future, so this extra time to establish new digital processes is welcomed.

CLIENTS WORDS

Efficient and effective. No fuss service.
Fine art & antiques client

DOWNLOAD OUR TAX APP

Wise & Co. tax app

All the latest tax rates, tips and calculators at your fingertips.

iOS Android