Animo Associates has prepared this bulletin for informational purposes only, and it is not intended to provide, and should not be relied on for, tax, legal, accounting or compliance advice. Professional advice should be obtained before engaging in any transaction and we will be pleased to provide such advice where appropriate.
As many of you may be aware, Budget 2015 introduced the Making Tax Digital (‘MTD’) initiative and outlined HMRC’s vision of transforming the UK tax system by executing it via a digitalised platform.
Whilst originally intended to come into force over staggered dates (commencing in April 2018), there was widespread concern amongst business owners, professionals and governing bodies in respect of the pace and scale of changes being introduced.
In response to the overwhelming pressure, the Government has deferred the roll out of the time table for MTD to ensure businesses have sufficient time to adapt to the changes. The revised timetable is currently as follows:
- April 2019 – Only businesses with a turnover above the VAT threshold (currently £85,000) will have to keep digital records (for VAT purposes only)
- April 2020 – Businesses will need start holding digital records and comply with quarterly reporting for all remaining taxes,
All businesses which are below the VAT threshold will (for now) be exempt from quarterly reporting requirements but can volunteer to do so. Contact Animo Associates for more information or any specific advice that is required.