HMRC today released an update on the Making Tax Digital regulations. (read our original Making Tax Digital blog post here.) The key point in the update is that the Making Tax Digital deadline has been delayed until “at least 2020”. Under the new timetable:
- only businesses with a turnover above the VAT threshold (currently £85,000) 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 quarterly, for other taxes until at least 2020
For more info, please visit: https://www.gov.uk/government/news/next-steps-on-the-finance-bill-and-making-tax-digital
Helen Warren, Tax Senior at d&t chartered accountants comments:
“The original plan from HMRC meant that many of the smallest businesses and sole traders would have had to start reporting online every quarter from April 2018. Many businesses were concerned about the tight deadline on this, and will be relieved to hear that today’s announcement from HMRC means that full quarterly reporting for businesses will not start before ‘at least 2020’ according to HMRC’s announcement.
Businesses with a turnover above the VAT threshold (currently £85,000) will, from April 2019, need to start keeping digital records, but only for VAT purposes, while those below the VAT threshold will be exempt from the requirements to report quarterly until the full rollout.
Making Tax Digital will be available on a voluntary basis for the smallest businesses, and for other taxes. This means that businesses and landlords with a turnover below the VAT threshold will be able to choose when to move to the new digital system. If you’d like to find out more about Making Tax Digital, please get in touch.”