Making Tax Digital has been delayed
Making tax digital “MTD” is HMRC’s initiative to digitalise the UK tax system, including how businesses and landlords maintain their records. MTD requires businesses and landlords to move to maintaining their accounting records too accounts software or an app.
Initially this was to be from April 2018 for Income Tax, however this has now been delayed to April 2020 at the earliest. This is a welcome change as the initial deadline gave limited time for businesses to prepare for the changes.
The first tranche of businesses that will be required to comply with MTD are VAT registered businesses from 6th April 2019. From this date all VAT businesses will be required to maintain digital records for VAT and submit their VAT information to HMRC using accounting software or an app.
All other taxes will be from April 2020 at the earliest, to which further information will be released.
Whilst April 2019 is 21 months away businesses that aren’t currently keeping records digitally need to start looking at the requirements for MTD, the changes that they need to make and putting a strategy into place to convert to accounting software.
As an early adopter of cloud software most of my clients will be MTD compliant, however I will be working with those that are not over the next six months to start the process of ensuring that they are MTD compliant by the April 2019 deadline, if not before.
If you have any questions about MTD or need help and support moving to being MTD compliant please get in touch!