An announcement on Making Tax Digital

A welcome announcement from HMRC has confirmed that there will be a new timetable for the introduction of Making Tax Digital.  The rules were originally intended to come into force for income tax and NIC purposes from April 2018. However, this has been pushed back to at least April 2020 for all taxes except for VAT. Only businesses with turnover exceeding the VAT threshold will be required to comply with the rules from April 2019 but then only for VAT purposes.

Under the proposed Making Tax Digital rules, businesses will be required to store records digitally and make quarterly submissions, in addition to the submission of an end of period statement. The rules were removed from the 2017 Finance Bill before it was enacted earlier this year but the provisions will be introduced in the second Finance Bill due later this year.

For more information on how Making Tax Digital will work please download our factsheet here.

 

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