Ministers have confirmed a new timetable for Making Tax Digital.
Whilst Making Tax Digital should provide businesses with a modern, streamlined system to assist with updating tax records and providing information to HMRC, concern had been expressed by the scope and pace of the proposed 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 from 2019.
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 smaller businesses, and for other taxes. This does mean that businesses and landlords with a turnover below the VAT threshold will be able to choose when to move to the new digital system.
If you have any queries, or would like to discuss, call David Buck on 01788 539000.