MTD update
The roll out of Making Tax Digital for Businesses has been amended.
MTD Update
The government have recently announced that the roll out of Making Tax Digital for Businesses has been amended, and the initial introduction will only cover VAT.
Businesses above the VAT threshold will have to start filing with MTD-compatible software from April 2019, but small businesses below the threshold “will not be asked to keep digital records, or to update HMRC quarterly, for other taxes until at least 2020,” the Treasury said.
Introducing MTD under the original timetable was becoming increasingly improbable ever since late April when Theresa May called the general election and sent the civil service into purdah. The MTD clauses were stripped out of the Finance Bill to ensure it could be passed before Parliament dissolved, and the post-election chaos left no time to reintroduce them.
This is great news for small businesses however it should not stop you considering keeping digital accounting records. This in itself has enormous benefits including real time data so that you are always aware of the financial position of your business and can act accordingly. Your accountant can also have 24/7 access to your data, enabling them to assist you with day to day data entry queries. We recommend Xero and Reckon One. Both cloud accounting solutions offering packages to suit all types of businesses. If you would like to discuss moving your business to the cloud or would like some more information on cloud accounting packages then please do contact us – email info@figurefairy.com
Under the revised timetable:
- Only businesses with a turnover above the VAT threshold (currently £85,000) will have to keep digital records and only for VAT purposes
- They will only need to do so from 2019
- Businesses will not be asked to keep digital records or to update HMRC quarterly, for other taxes until at least 2020
- Small businesses will be able to file digitally on a voluntary basis for other taxes.
For additional information on MTD, please see the following link: –
https://www.gov.uk/government/publications/making-tax-digital/overview-of-making-tax-digital
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