Ministers have announced that they’re changing how they implement Making Tax Digital.
Under the new rules and timetable, businesses will only have to keep digital records and update the taxman every quarter from 2020. Starting in 2019, businesses with a turnover above the VAT threshold, currently £85,000, will have to keep records for VAT purposes. This information is already provided to HMRC four times a year, meaning that in the initial stages, businesses won’t have any more admin than usual.
Whilst supporting the move to modernise the tax system, the government recognised that the original timings wouldn’t give enough time to prepare and enable a smooth transition. The announcement means that around three million of the smallest businesses and landlords will be able to implement digital record keeping at their own pace.
Making Tax Digital will also now be available on a voluntary basis for the smallest businesses.
By digitising our system and staying ahead of the curve with new technology means that we are already prepared for Making Tax Digital. For more information on how your business may be affected, contact Gill.Molloy@championgroup.co.uk or call 0161 703 2500.