HMRC has announced significant changes to the Making Tax Digital (MTD) scheme, giving many businesses longer to implement the changes.
The new digitised tax scheme which was originally due to go live from April 2018 has now been delayed until 2020 at the earliest for all taxes other than VAT.
Listening to feedback from the accountancy profession, the government has extended the roll out of MTD, so that now only businesses with a turnover above the VAT threshold will have to keep digital records from 2019, and only for VAT purposes.
Businesses will not be asked to make the switch to MTD and update HMRC quarterly for other taxes until at least 2020.
Here’s what you need to know about changes to MTD for now:
- Both the scope and the timetable for MTD has now been amended.
- Businesses with turnover above the VAT threshold (£85,000) will have to keep digital records for VAT purposes only, starting in 2019. This will remove the need for many property landlords to keep digital records.
- Businesses will have to keep digital records to update HMRC quarterly for taxes other than VAT from 2020 instead of 2018 as originally proposed.
- Small businesses and property landlords (businesses beneath the VAT threshold), will be able to file digitally on a voluntary basis for all other taxes.
Read a full round up in Accountancy Age for more information on the MTD changes and the Summer Finance Bill.
Get ahead of the digital game with RWB
Here at RWB Chartered Accountants we’re already equipped to assist our clients with keeping digital records. As Xero Platinum partners, our certified team can support your transition to cloud accounting and get your digital records in place and running smoothly before MTD comes into effect. Don't leave it until the last minute, contact us on 0115 964 8888 or email firstname.lastname@example.org for help in getting ahead of the digital game.
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