In a recent HM Treasury statement, the Government has announced an amended timetable for the implementation of its Making Tax Digital plans. The move to delay the requirement for digital record-keeping and quarterly reporting will be welcomed by the accountancy profession and business groups who have criticised the Government for not giving businesses enough time to prepare for the changes.
Under the revised plans, businesses with a turnover above the VAT threshold (£85,000) will need to keep digital records and update HMRC using compatible software for VAT purposes only from 2019.
There will be no requirement for digital record keeping or quarterly reporting for other taxes until 2020 at the earliest, giving small businesses an additional two years to prepare.
The Government was keen to emphasise that it still intends to push ahead with its plans to modernise the tax system but acknowledged that its initial timetable for Making Tax Digital was too onerous on small businesses.
For more information, please contact James Chappell.