Making Tax Digital
Yesterday’s statement from the Treasury confirmed delays for the Making Tax Digital timetable. The new timeline shows that only businesses with turnover above the VAT threshold (£85,000) will need to keep digital records, will come under MTD in 2019, as they already report quarterly, with other businesses coming under MTD in 2020.
The New Making Tax Digital 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. These businesses currently report quarterly.
- 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.
In the Treasury statement, Mel Stride, Financial Secretary to the Treasury and Paymaster General (the person responsible for MTD policy decisions), said that digitalizing the tax system is “the right direction of travel” but many have been worried about the practicalities, and so the government has listened to concerns and acted accordingly by delaying the Making Tax Digital timetable