Making Tax Digital update
On 13th July 2017 HMRC announced that the government had listened to concerns about the pace of Making Tax Digital (MTD) reforms and have agreed to slow down transition to the new regime.
Originally, it was proposed that sole traders, partnerships and those with rental income above the VAT threshold (currently £85,000.00) would have to begin quarterly reporting of accounting data from April 2018. This has now been postponed until at least April 2020.
From April 2019 VAT registered businesses with a turnover above the VAT threshold will be mandated to keep digital records and file MTD-compliant VAT returns. This is for VAT purposes only and no other tax.
For smaller businesses, Making Tax Digital will be available on a voluntary basis, but not mandated until at least 2020.
These changes will be legislated for as part of the Finance Bill 2017. For further information please click this link: https://www.gov.uk/government/news/next-steps-on-the-finance-bill-and-making-tax-digital?src=em&cid=em_20170801_SN_MTD_Change
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