Making Tax Digital – Breaking News!

HMRC yesterday announced that the launch of their Making Tax Digital for Business programme has been pushed back until at least April 2020. Implementation of digital record keeping and quarterly reporting to HMRC for unincorporated businesses and property landlords was planned to be phased in from April 2018, however this has been postponed for at least 2 years to allow businesses more time to migrate to digital record keeping.

Additionally, Making Tax Digital will be available on a voluntary basis for the smallest businesses, meaning that businesses and landlords with turnover below the VAT threshold (currently £85,000) will be able to choose when to move onto a digital system.

Whilst the timetable for Income Tax has been deferred, the requirement for VAT has not changed and VAT registered businesses with a turnover exceeding the VAT threshold will be obliged to maintain digital records and provide quarterly updates to HMRC from April 2019.

If you have any questions with regard to Making Tax Digital or you require any assistance please contact Blair Hay (blair.hay@aab.uk), or your usual AAB contact.