Making Tax Digital: New Timetable
On 13 July 2017 the Government announced that it would be delaying the introduction of Making Tax Digital (MTD).
In response to concerns raised by MPs, businesses and professional bodies such as the CIOT, MTD will now not be mandatory until April 2019, and then only for VAT purposes.
Under the new timetable:
- Only businesses over the VAT threshold (currently £85,000) will have to keep digital records.
- Digital records will only be required initially for VAT purposes, and only from April 2019.
- Business will not have to keep digital records or report quarterly for other taxes (e.g. income tax and corporation tax) until April 2020 at the earliest.
- MTD will be available on a voluntary basis for businesses below the VAT threshold, and for other taxes.
HMRC will begin to pilot MTD for VAT by the end of 2017, starting with small-scale, private testing, followed by a wider, live pilot in Spring 2018. The Government have stated that they will not widen the scope of MTD beyond VAT before the system has been shown to work.
Legislation for MTD will be included in the next Finance Bill, which is expected to be introduced as soon as possible after Parliament returns from its summer recess on 5 September 2017.
The remainder of the MTD pages should be read with the above in mind.