As the warmer months become a distant memory, plans for Making Tax Digital continue.
Following last year’s EU referendum and this year’s snap General Election, the start date for Making Tax Digital was delayed. Originally planned to roll out from April 2018, Making Tax Digital is now set to be a slower process, which has been a relief to many business.
A new timetable was revealed by the Treasury over the summer, stating that only businesses with a turnover greater than the VAT threshold will have to keep digital records for VAT purposes and will only have to do so from 2019. Other businesses will not need to keep digital records until at least 2020, with quarterly updates only involving VAT initially.
Following meetings over the summer between the ICAEW and HMRC, the timetable for Making Tax Digital appears to remain the same.
Making Tax Digital pilots have already begun, with volunteers testing software systems and products for effective digital record keeping.
HMRC continues to work with commercial software suppliers to develop the best systems and to ensure a smooth transition to Making Tax Digital.