Making Tax Digital
haysmacintyre have welcomed yesterday’s announcement by HM Revenue & Customs of a delay in the introduction of Making Tax Digital.
Originally scheduled to start in April 2018 for individuals, the new system of digital record keeping and quarterly submissions will commence now in April 2019 and only apply to businesses above the VAT threshold (currently £85,000) and only for VAT purposes.
Making Tax Digital will be available on a voluntary basis for other businesses and other tax purposes from April 2020 at the earliest, with the exact date to be confirmed once HMRC has reviewed the success of the roll-out for VAT.
HMRC remain committed to introducing the new system which they anticipate will help to close the “tax gap” of undeclared/untaxed income, thus boosting government revenues.
Commenting on the delayed introduction, Private Client Tax Director Mark Pattenden said:
“This announcement signifies a much needed change of approach from HMRC.
“Rather than rushing through a complicated new system with insufficient publicity and preparation, HMRC are pressing the pause button and giving everyone time to think.
“It represents an opportunity for HMRC to work with the accountancy profession and the software companies that will implement the system to develop products that will enable clients and tax professionals to meet the quarterly reporting requirements set out in MTD.”
For further information regarding Making Tax Digital, please contact Mark Pattenden, Private Client Tax Director, (+44(0) 20 7969 5590) or Katharine Arthur, Head of Tax, (+44(0) 20 7969 5610), or any member of haysmacintyre’s tax team.