On the 13 July 2017, the Government announced Making Tax Digital (MTD) will commence in April 2019 for VAT purposes for businesses with turnover above the VAT threshold (currently £85,000) and will be delayed until at least 2020 for all other businesses.
Under the proposed timetable:
- only businesses with a turnover above the VAT threshold (currently £85,000) will have to keep digital records, and initially only for VAT purposes from 2019
- businesses will not be asked to keep digital records, or to update HMRC quarterly, for other taxes until at least 2020
HMRC has already begun piloting the Making Tax Digital services and will continue to do so, testing the system with a variety of businesses.
HMRC will start to pilot Making Tax Digital for Businesses (MTDfB) for VAT by the end of the year, starting with small-scale, private testing, followed by a wider, live pilot starting Spring 2018. This will allow for well over a year of testing before any businesses are mandated to use the system.
However, this means, we as your accountants, must be ready to on-board our clients to cloud based software, migrate and then train accordingly. If the information to be submitted is to remain robust, having been screened by ourselves before submission.
We have already taken steps to ensure our team qualify. Within our ranks we have 16 Xero certified advisors, Quickbooks champions and migration specialists.