There is widespread agreement that Making Tax Digital for businesses is the right approach for the future. However a number of concerns about the pace and scale of change have been raised. As a result the government has announced that the roll out for Making Tax Digital has been amended to ensure businesses have plenty of time to adapt to the changes.
Businesses will now not be mandated to use the Making Tax Digital until April 2019 and then only to meet their VAT obligations. This will apply to businesses who have a turnover above the VAT threshold – the smallest businesses will not be required to use the system, although they can choose to do so voluntarily.
This change means that for now at least, no business will need to provide information to HMRC under Making Tax Digital more regularly than they do already.
As ever, if you have any questions, please contact Michael Burgess or Rebecca Thorley on 01782 279615.