9 March 2017
Considering it is the biggest reform to the tax system since the introduction of self assessment in 1996/97, the Chancellor’s Budget speech was remarkably light on detail about the Making Tax Digital (MTD) regime.
However, he did make one key announcement which will be a welcome stay of execution for a number of readers.
Whilst the April 2018 start date was originally intended to apply to all landlords and unincorporated business turning over in excess of £10,000, we have now been told that those with a turnover lower than the VAT registration threshold of £85,000 will not be forced into the new system until April 2019.
There will still be a number of larger landlords and businesses with a turnover in excess of £85,000 who will be the guinea pigs of H M Treasury’s brainchild, but nonetheless this is a welcome concession in what has otherwise been a process where feedback and pleas fell on deaf ears.
As reported a couple of weeks ago, there is a House of Lords report on MTD due for publication at the end of March, and its certain that there are yet further twists and turns to come.
We’ve separately reported on some of the very good reasons to adopt cloud accounting other than just to comply with MTD, and my colleague Adam will shortly be publishing the results of a poll we have run, seeking to understand the matters which taxpayers see as barriers to adopting the new technology. So watch this space, and don’t rule anything out just yet. And of course, if you want to discuss how MTD might affect you then call your usual UHY adviser who will be happy to help, or complete our online contact form.