24 July 2017
The Government appears to have finally listened – they have now revised the timetable for the rolling out of the quarterly reporting elements of Making Tax Digital (MTD).
However, the planned use of MTD for VAT with an introductory date of April 2019 has been retained. This applies to all businesses (incorporated and unincorporated) with a turnover that exceeds the VAT threshold of £85,000.
The planned implementation of MTD for income taxes which would have affected nearly all farmers has now been delayed from April 2018 until at least April 2020, which is really good news.
In addition the pilot project and testing of the MTD system will continue, with a voluntary early adoption period to be introduced between now and 2020. So those businesses wanting to maintain digital records and make regular reports to HMRC will be able to do so without being forced to.
The changes are what the accountancy and tax profession have been calling for.
With that said, the above announcements do not do away with the need to review systems and processes. Over the coming months more details will become available on the new rules and these will need to be taken into account when deciding which digital systems best suit your requirements. We will, of course, keep you updated as the announcements are made.
There are reasons to adopt new digital technology other than just the obligations to do so under MTD, and the leading providers of accounting software, Farmplan, Landmark, Sage and Xero will all be keen to show you what their accounting software has to offer and the on–the-go benefits available in running any modern business.
If you’re considering a new accounting package and want to know which software would best suit your needs, or if you have any other questions about Making Tax Digital, please feel free to contact me or your usual UHY adviser – we’d be happy to help.