Today the government released its plans on the finance bill and confirmed a new timetable for Making Tax Digital and the overall move to digitalisation.
Under the new plans:
- Businesses with greater than £85k turnover will need to keep digital records from 2019 (previously 2018).
- Businesses with greater than £85k turnover will not be expected to report data quarterly to HMRC until at least 2020 (previously 2018).
- Any business/landlord can voluntarily keep digital records and report data quarterly to HMRC from 2018 (previously mandatory from 2018/19 depending on threshold)
- Businesses/landlords with less than £85k will no longer be required to keep digital records or report quarterly to HMRC on a mandatory basis.
This announcement provides a more sensible timeframe for the implementation of MTD and removes the requirement for smaller businesses to keep digital records and report quarterly.
What the delay means for advisors and their clients
Despite these changes, advisors are telling us that the move to digitalisation is more certain than ever and this has benefits for both them and their clients – and the sooner the transition the better.
The delays in mandating Making Tax Digital will support advisors with the planning and preparation for Making Tax Digital, providing them with time to implement the new technologies and engage clients with these new tools. Practices we have spoken to are keen to continue at the same pace with the transition to digitalisation and we at Wolters Kluwer are ideally placed to support them through this process.