MTD - Making Tax Digital
WHAT MAKING TAX DIGITAL REALLY MEANS
... WHO,WHAT & WHEN?
The government has said it believes introducing a new digital tax system is the right direction in which to move, although it has recently revised its plans significantly. Previously most businesses were to be included within the move to MTD by April 2019.
This has now changed!!
In the draft Finance Bill (2017) the government announced the implementation of MTD is to be scaled-back in the short-term, as follows:
• Only VAT-registered businesses with a turnover above the VAT threshold will need to keep digital records – but only for VAT purposes and only from April 2019;
• Other businesses will not be asked to keep digital records or update HMRC quarterly for other taxes – primarily income tax and corporation tax – until April 2020 at the earliest, pending further government announcements;
• Voluntary submissions for income tax will be accepted prior to April 2020 – although once again firm details are yet to be made available.
This is the total extent of MTD as it affects business at the moment. Any earlier plans have been set aside or postponed.
Obviously, clients will not want to be caught unawares about MTD, but esp believes that a little planning will alleviate any undue concerns.
Although nothing has yet to be finally decided by the Government, it would be a good idea to prepare by perhaps using some accounting application if you are currently using a spreadsheet for your records. Sage Online Accounting solutions will be ready for MTD when the time comes.
Please ask esp for further details if you are concerned about your business being compliant.