The deadline for Making Tax Digital has been pushed back to April 2019 to give businesses longer to adopt the new scheme.
Under the new timetable, businesses with a turnover above the VAT threshold of £85,000 will be required to keep digital records for VAT purposes from April 2019.
No businesses will be asked to keep digital records or provide HMRC with quarterly updates for other taxes until 2020. The government has also stated that HMRC would start to pilot Making Tax Digital for business (MTDfB) for VAT by the end of the year, following up with a wider live pilot in spring 2018. This way, the system will have been tested for a year, ensuring that businesses can comply with ease.
Rob Case, our Head of Tax, said: “As anticipated, a delay has been announced for Making Tax Digital, which seems to make commercial sense for all involved. It is good to see that the business community has been listened to.”