Breaking News: New timetable for Making Tax Digital confirmed
Yesterday the Treasury has released an announcement, as they set out the next steps for the Finance Bill, confirming a new timetable for Making Tax Digital.
In 2015, HM Revenue & Customs (HMRC) released a Making Tax Digital (MTD) paper which proposed fundamental changes to the tax system to bring it into the 21st centenary.
After previously deciding that the legislation is too important to rush, Ministers have now confirmed that the main principles of MTD will be postponed until 2020 in order to ensure businesses have time to adapt to the changes ahead.
One of the most significant alterations to note is that under the new timetable, MTD will now not be mandatory for business and landlords which fall under the VAT threshold (currently at £85,000).
The new timetable has been confirmed as follows:
- 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 to update HMRC quarterly, for other taxes until at least 2020.
You can read the full news story of the Government’s website here.
Here at Naylor Wintersgill, we welcome the announcement generally and believe that considering a switch to cloud based accounting software should still be at the top of the agenda for most SME’s. The MTD delay just means we will have more time to talk to clients about the benefits of using cloud accounting software and that we are now able to work with our clients, without the pressures of deadlines and submissions, to ensure they are using available software to work efficiently and effectively.
Partner Colin Whitehead comments, “Adopting cloud accounting early will ensure our clients are best place to deal with MTD, as it is still very much a case of when, not if, the changes will affect the way business records are kept and income is reported to HMRC.”
If you would like to discuss your transition to cloud based software please do not hesitate to get in touch, we’re here to help and would be delighted to assist you with the implementation.
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