HMRC has today announced significant changes to the roll-out of its Making Tax Digital (MTD) scheme, which was due to go live from April 2018. MTD is the biggest change to the tax environment that we have ever seen and is by far one of the greatest challenges facing businesses in the near future.
Much to many peoples surprise, the scope and the timescale have been pared back following feedback and concerns about the broad scope and short timescales from parliamentary bodies, businesses, the accounting profession and software companies.
When you will be now affected
The affect on businesses, self employed people and landlords is as follows:
- Only businesses with a turnover above the VAT threshold, currently £85,000, will have to submit digital returns for VAT purposes from April 2019.
- Businesses will not be asked to keep and submit digital records quarterly for other taxes until at least April 2020, instead of the April 2018 date originally proposed.
- Small businesses will be able to file digitally on a voluntary basis for other taxes.