Making Tax Digital
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Find out what Rebecca Benneyworth thinks you should be doing to prepare your firm and clients for the transition to digital tax.
On the 13 July Ministers confirmed a new timetable for Making Tax Digital (MTD).
From April 2019 businesses with a turnover above the VAT threshold (currently £85,000) will need to keep Digital records for VAT purposes.
Businesses below the VAT threshold will now be exempt from requirements to quarterly reporting until the government can reassess the plans. This is likely to be after the current pilot and before 2020.
MTD will be available on a voluntary basis for the smallest businesses, and for other taxes. Businesses and landlords with a turnover below the VAT threshold will be able to opt to use the new digital reporting system but it will not be mandatory until 'at least' 2020.
The Treasury document states that 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.
These changes will be legislated this Autumn as part of the Finance Bill 2017.
The Marketing Kit is being rewritten to incorporate the revised timetable and we will let you have details shortly.
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