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
While undoubtedly a great opportunity to realise value, selling a business can be an extremely complex and time-consuming process. James
Independent chartered accountancy and business advisory firm UNW has strengthened its payroll team after winning a raft of new work
Raising awareness and challenging the stigma around mental health is high on the national agenda, and rightly so. The recent
Teesside-based chemical manufacturer Chemoxy International is to be acquired by Novacap for an undisclosed figure with the help of business
Chris Gray joined The Children’s Heart Unit Fund (CHUF) as Head of Fundraising in January 2014 and, last year, became