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Making Tax Digital postponed until 2020 for non-VAT taxes

As a result of concerns expressed throughout the accounting industry, the government has decided to delay the Making Tax Digital intakes.

A new timetable clarifies that businesses mandated to maintain digital records have been limited to those who have turned over more than the £85,000 VAT threshold, and strictly for VAT reasons, beginning in 2019. For any other taxes, firms will not be required to transition to Make Tax Digital until 2020 at the earliest.

While MTD is still being regarded as the right decision to streamline the tax system and bring it into the 21st Century, the Treasury agreed that the timetable previously in force needed to be reconsidered to ensure that businesses can experience a smooth transition. The result of this change of heart means that three million landlords and small firms will be able to voluntarily transition to digital accounting at their convenience before it becomes mandatory in at least two years’ time.

Financial Secretary to Paymaster General and the Treasury, Mel Stride, 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.”

Although the delay gives them a little more breathing space, businesses would be wise to avoid putting off the transition until the last minute. An accountant in the Wirral is more than capable of helping firms to make the change.

Posted by Peter
July 28, 2017
Tax

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