Ministers confirm a new timetable for Making Tax Digital
Released 13 July 2017
HM Treasury and HMRC have issued a press release confirming a new timetable for Making Tax Digital (MTD).
Under the new timetable:
•only businesses with a turnover above the VAT threshold (currently £85,000) will have to keep digital records and only for VAT purposes;
•they will only need to do so from 2019;
•businesses will not be asked to keep digital records, or to update HMRC quarterly, for other taxes until at least 2020.
Making Tax Digital will be available on a voluntary basis for the smallest businesses, and for other taxes. All businesses and landlords will have at least two years to adapt to the changes before being asked to keep digital records for other taxes.
HMRC will start to pilot MTD for VAT by the end of this year, starting with small-scale, private testing, followed by a wider, live pilot starting in Spring 2018. This will allow for well over a year of testing before any businesses are mandated to use the system.
Legislation will be included in the Finance Bill to be introduced later this year.
View the press release Next steps on the Finance Bill and Making Tax Digital.