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Making Tax Digital: New Timetable Announced

By Emma Gilbert - Smith

On 13 July HMRC announced that plans for Making Tax Digital have been curtailed. The implementation timetable has been delayed, allowing businesses more time to prepare for the changes.

You can watch my video explaining the recent announcement here:

Click here to watch the video in YouTube in a new window, and see the links in the description of the video.

Unincorporated businesses and landlords will no longer be mandated to keep digital records and file quarterly returns for income tax purposes from April 2018.  Instead, HMRC have announced that:

  • From April 2019, businesses with an annual turnover above the VAT registration threshold (currently £85,000) will be required to keep digital records and submit quarterly online returns, for VAT purposes only.
  • Businesses will not be mandated to use the Making Tax Digital system for income tax and corporation tax purposes until 2020 at the earliest.
  • Businesses with turnover below the VAT registration threshold (including those voluntarily registered for VAT) may use the Making Tax Digital system voluntarily.

Of course, quarterly online filing for VAT is nothing new, but the requirement to hold VAT records in a digital environment may pose a challenge for those who currently use spreadsheets or paper-based systems to arrive at their VAT return figures.

Many firms have communicated with their clients about Making Tax Digital and may now wish to explain how HMRC’s announcement will impact on them.  SWAT UK have written a client letter template to help firms do this.  It is available to download for free here.

As more details about Making Tax Digital are published, SWAT UK will keep you up to date through our newswire. If you aren’t already registered to receive our monthly newswire, click here to make sure you receive it from now on.

In spite of the delayed implementation, it is still important to prepare your practice for the changes that will take place in April 2019 and beyond.  SWAT UK will be running a course in Summer 2018 to cover Making Tax Digital legislation and guidance.  The course will be useful to those who wish to help their clients deal with the changes. If you register for our newswire, you will be notified as soon as our 2018 programme is available and we will tell you how you can get your copy.

Many of our ‘General Tax Update’ and ‘Six Monthly Tax Update’ webinars included sections on Making Tax Digital. If you watch a webinar recording that was recorded prior to the government’s U-turn on 13 July, please be aware that some of the Making Tax Digital content may no longer be relevant. All future update courses will keep practitioners fully abreast of the latest news; for example General Tax Update Quarter 3. 

July 2017 

 

Disclaimer
This article is published with the understanding that SWAT UK Limited is not engaged in rendering legal or professional services. The material contained in this article neither purports, nor is intended to be, advice on any particular matter. This article is an aid and cannot be expected to replace professional judgment. SWAT UK accepts no responsibility or liability to any person in respect of anything done or omitted to be done by any such person in reliance, whether sole or partial, upon the whole or any part of the contents of this article.

 

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