We are pleased that the Government has finally listened to concerns about the highly ambitious timetable for the introduction of Making Tax Digital (“MTD”) and confirmed yesterday that its introduction will be delayed by at least two years.
Under the original timetable, Limited liability partnerships (“LLPs”), partnerships, unincorporated businesses, self-employed individuals and landlords with turnover in excess of the VAT threshold (£85,000) would have been required to comply with quarterly reporting under MTD from April 2018. Those with turnover of more than £10,000 would have followed from April 2019 and Companies in April 2020.
Under the new timetable there will be no requirement to keep digital records or file quarterly returns until at least 2020. This is with the exception of VAT registered businesses with a turnover in excess of the VAT threshold who will have to file information digitally from 1 April 2019. The rationale behind this is that VAT returns are usually already filed quarterly and businesses will not be required to provide information to HMRC more frequently than they do now.
The delay is welcomed as it is will allow businesses more time to adapt to the change to digital reporting. In addition, many stakeholders were concerned that HMRC were not fully ready for the change and this allows them the time to ensure a proper system is put in place.
For more information please contact director Suzanne Briggs at firstname.lastname@example.org or partner James Rimell at email@example.com