Making Tax Digital just “much too difficult” as Government ditches original timetable
It was a scheme that was met with trepidation ever since the original roadmap was laid out in December 2015, and it now seems the government have taken heed of the concerns raised by MPs, professional bodies, businesses and agents, after HM Treasury announced that the roll-out of Making Tax Digital (MTD) has been deferred until 2020 at the earliest.
After taking into account the Treasury Select Committee report, released in January 2017, as well as over 3,000 consultation responses from concerned business owners and agents, HMRC have laid out a new timetable for businesses to moving to the new digital system.
Under the newly reformed timetable, only businesses above the VAT threshold (currently £85,000) will have to keep digital records, and then only for VAT purposes, from 2019. For other taxes, no businesses will be asked to report quarterly or keep digital records until 2020 at the earliest.
Cited as the ideal opportunity to bring an end to the annual paper tax return and improve the administration burden of the tax system long-term, the extended timetable should allow businesses more opportunity to comfortably transition to MTD. HMRC will still be introducing a MTD pilot, initially on a small scale, which will be widened into a more public pilot study by Spring 2018.
Charles Linaker, Tax partner at UNW said: “This is a welcome and sensible move by the Government. The original timetable for MTD was clearly going to be much too difficult for all concerned.”
For more information on this subject, or any other tax related matter, please visit: http://www.unw.co.uk/service/taxation
Darlington based food manufacturer Myco Foods Ltd plans rapid growth after securing £250,000 worth of funding from NPIF – FW
Following The Bank of England’s announcement that interest rates were going to rise for the first time since 2007, UNW’s
UNW tax partner David Ward spoke to BBC Radio Cumbria yesterday about tax avoidance, tax evasion and the so called
Mark Hetherington, VAT partner at UNW, reflects on some of the challenges facing business owners as Making Tax Digital becomes
No sooner has everyone moved to the FRS102 SORP that there is more technical change afoot. Financial Reporting Exposure Draft