After months of pressure from MPs and the Government’s Treasury Committee, HMRC have confirmed that Making Tax Digital (MTD) reporting will not start until April 2019, and then only for VAT purposes. MTD reporting for other taxes, will not start before ‘at least 2020’ to enable a reappraisal of the plans.
HMRC and software providers will use the delay to run a year-long test of reporting, before the system goes live. The success of the reporting system is essential if MTD is to generate an additional £500m in tax revenues each year, as targeted.
- Businesses and landlords with a turnover above £85,000 will have to keep digital records for VAT purposes from 2019
- These businesses will not need to provide a quarterly update to HMRC for other taxes until at least 2020
- Business with turnover below £85,000 will have the option to provide digital records voluntarily via MTD
If you have a question about Making Tax Digital, or the new timescale, please contact Hazel Gough, Associate Tax Partner on 0131 558 5800 or email firstname.lastname@example.org.