On 13 July 2017, the Government announced the new timetable for Making Tax Digital – the initiative intended to bring the tax system into the 21st century by providing businesses with a modern, streamlined system to store their tax records and provide information to HMRC.
The Government has revised the expected roll out to ensure businesses have plenty of time to adapt to the changes. Under the new 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, and
• businesses will not be asked to keep digital records, or to update HMRC quarterly, for other taxes until at least 2020.
Making Tax Digital will be available on a voluntary basis for the smallest businesses, and for other taxes. All businesses and landlords will have at least two years to adapt to the changes before being asked to keep digital records for other taxes.
The Government also confirmed that the Finance Bill will be introduced as soon as possible after the summer recess. This will legislate for all policies that were included in the pre-election Finance Bill. All policies originally announced to start from April 2017 will be effective from that date.
The Government’s announcement is available to view here.