Delays for Making Tax Digital
So HMRC have given in to the inevitable, and delayed implementing their whizzo new, cloud accounting, digital tax project.
Sole traders were due to be the first group to use the new system – some as early as next April – whereby they’d be reporting income and business-related expenses online every three months, plus a final tax return at the end of the tax year.
Now things are being put back to 2020, unless you’re VAT registered, in which case it’s 2019.
The statement this week says from 2019
- Only businesses with a turnover above the VAT threshold (currently £85,000 in any 12 months) will have to keep digital records and that will just be for reporting VAT
- Businesses will not be asked to keep digital records or do the quarterly reporting for other taxes until at least 2020.
I think it’s fair to say that most people I train will be mightily relieved at the delay.
If you want to hear accountants explain this stuff in excruciating detail, try these two:
We’ll be updating the relevant training handouts shortly.
Posted on 14 July 2017