MTD: Revenue hold firm.
HMRC have published their long awaited response to the making tax digital (MTD) consultation documents. In essence the original timeline as detailed in the consultation documents remains unchanged, with the first taxpayers being affected by MTD from April 2018. Therefore for those businesses with an accounting year end of 5 April and all landlords within the scope of MTD, the first quarterly return will need to be submitted in the summer of 2018.
This does not leave much time to prepare, especially as much of the detail remains unclear. We therefore need to work on the assumption that all landlords and unincorporated businesses will be brought within MTD, in particular bearing in mind that they will be mandated to keep accounting records electronically and submit this data quarterly to HMRC.
We are recommending that all our affected clients speak to us so that we can recommend the best options for them and their business. If this is the take up of a new accounting package then it would be prudent to make the change before the submission of data becomes mandatory, so please call your usual advisor so they can talk you through your options as soon as possible.
Blog entry by: Catherine Hubbard.