The Government has now set out a revised timetable for implementation of the Making Tax Digital (MTD) project.
Three million of the smallest businesses and landlords will be able to move to the new digital system for keeping tax records at a pace that is right for them, Ministers announced today as they set out the next steps for the Finance Bill.
While the Government and HM Revenue & Customs clearly remain committed to the introduction of compulsory digital record-keeping, they have listened to concerns raised by many about the pace and scope of the proposed changes.
Instead of a phased introduction originally planned to begin in April 2018, the new timetable can be summarised as:-
- Only businesses with a turnover over the VAT threshold (£85,000 for 2017/18) will be compelled to keep digital records.
- MTD will commence in April 2019 and will only apply to VAT submissions.
- Other taxes (Income Tax/Corporation Tax) will only be brought into the MTD system once it has been proven to work well and this will be no earlier than April 2020.
- Businesses may voluntarily adopt Making Tax Digital if their turnover is below the VAT threshold or they wish to use MTD for taxes other than VAT.
For further information and to read the Government announcement in full visit