It has now been declared that Making Tax Digital for businesses will be delayed until April 2019 and will initially only apply to businesses with a turnover above the VAT threshold (£85,000). For other taxes, businesses will not be asked to keep digital records or report to HMRC quarterly until at least 2020. The new changes will mean businesses and landlords with a turnover below the VAT threshold can choose when to move to the new digital system.
The Government has delayed the roll out due to many expressing concerns about the scope and pace of these changes – giving businesses plenty of time to adapt and prepare for the changes.
Making Tax Digital is being introduced by the Government in order to make it easier for individuals and businesses to get their tax right and keep up to date with their affairs. Marking the end of the annual tax return for millions.
There is a consensus that Making Tax Digital for Business is the best way to move forward for the future and eventually all recording and communication with HMRC will be digital.
If you would like to know more about Making Tax Digital and how it will impact you, get in touch with a member of the Walker Begley team on 01925 210 000
