Making Tax Digital: Play or Pause?
HMRC has recently confirmed that Making Tax Digital (MTD) for VAT registered businesses will go ahead from April 2019, mandating the keeping of digital records and the submission of VAT returns using MTD functional compatible software. The submission of VAT returns through HMRC's existing portal will no longer be accepted.
Given the demands of Brexit related projects, HMRC has also confirmed that MTD for businesses not registered for VAT will not proceed before April 2020. MTD for individuals without self employment or rental income will not commence until a later, yet to be determined date.
All businesses, but particularly those registered for VAT, should prepare for MTD now, moving to cloud accounting software, if they haven’t already done so. HMRC and software providers are currently finalising their detailed plans and products.