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Confused by HMRC's 'Making Tax Digital'?

On 13 July 2017, the government announced that Making Tax Digital for business would be delayed until 2020 - with the exception of VAT. This is what the new timetable for Making Tax Digital now looks like:

From April 2019 – only VAT Registered businesses need to keep digital records and only for VAT purposes.  During 2019/2020 – all businesses can try MTD on a voluntary basis.  From 2020 onwards, companies and large partnerships are to join MTD.

Note: If your business has a turnover of less than £10,000, you can be excluded from MTD.

Making Tax Digital will help bring our whole tax system into the 21st Century by providing businesses with a modern, streamlined system to keep their tax records and provide information to HMRC. The roll out for Making Tax Digital has been amended to ensure businesses have plenty of time to adapt to the new changes.

“Several of our clients have been concerned about the scope and speed at which they might be expected to comply with all aspects of Making Tax Digital,” said Afford Bond Partner, Paul Edwards. “But we can guide you through this process and in the long run, making your reporting systems digital will help streamline your business and its profitability.”

And as VAT already requires quarterly returns, no business will need to provide information to HMRC any more regularly during this initial phase, than they do now. Clearly, Making Tax Digital requires careful planning and can be a complicated area to navigate on your own. For an informal discussion, please contact Paul Edwards at our Nantwich, Cheshire chartered accountants office on Paul.Edwards@affordbond.com or use the contact form on our website.