HMRC have published an update to the Making tax Digital timetable which has pushed back the dates for implementation.
Mel Stride, Financial Secretary to the Treasury and Paymaster General said:
Businesses agree that digitising the tax system is the right direction of travel. However, many have been worried about the scope and pace of reforms.
We have listened very carefully to their concerns and are making changes so that we can bring the tax system into the digital age in a way that is right for all businesses.
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 HMRC quarterly, for other taxes until at least 2020
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.
As VAT already requires quarterly returns, no business will need to provide information to HMRC more regularly during this initial phase than they do now.
All businesses and landlords will have at least two years to adapt to the changes before being asked to keep digital records for other taxes.
At PML Accountants we welcome an end to the uncertainty and the revised timetable will allow more time for us all to be prepared. We remain committed to assisting our clients to be ready and adopt the record keeping practices which will satisfy the new reporting requirements as soon as possible.
If you wish to discuss these issues in more detail and find out how they will affect you please contact us on 01639 870087 or email@example.com.