New Making Tax Digital Timetable Announced

Sean Wiegand Accountant EssexPosted by Sean Wiegand

Further to concerns raised by the business community and professional bodies regarding the pace of implementation, HMRC have today announced a revised timetable for the introduction of Making Tax Digital #MTD, which I am sure will be welcome news to many of our clients.

The new timetable:

•    For VAT purposes only, businesses that have a turnover in excess of the VAT threshold (currently £85,000) will need to keep records digitally from 2019.

•    Businesses will not have to keep digital records and update HMRC quarterly for Income Tax or Corporation Tax until at least 2020.

HMRC have stated that they will start to pilot Making Tax Digital on a small scale basis for VAT by the end of this calendar year, with a larger pilot commencing in Spring 2018.

At Lambert Chapman, we have been proactive at getting the message to our clients that Making Tax Digital is coming so that they are prepared for their staging dates, and we will continue to do so - today's announcement just gives us a little more time to work with our clients to find the best software solutions and prepare their records for digital accounts.

Only yesterday, I was jointly running a Client Lunchtime Learning Session in Maldon which received a mixed reaction to the proposals. However, if we take this time to implement the right systems, then they will be in a better position to understand their financials and therefore be able to make informed business decisions.

In my opinion, I think most businesses (and accountants!) will be grateful for this breathing space and use it to plan a sensible timescale to convert to digital records. This extra time will allow businesses to get used to using a digital platform before they have to start submitting information to HMRC each quarter.

There are a variety of different software packages available and depending on your business, one program may be more favourable than another. There are also some advantages especially when raising sales invoices and reconciling your bank account. There are currently some competitive deals available in the marketplace, and so you may want to move early and secure your discount while they are still available.

If you have any questions regarding Making Tax Digital then please speak to your Lambert Chapman contact. In the meantime, we'll be contacting our clients with a further update in due course.

July 2017

Disclaimer

The views expressed in this article are the personal views of the Author and other professionals may express different views. They may not be the views of Lambert Chapman LLP. The material in the article cannot and should not be considered as exhaustive. Professional advice should be sought in connection with any of the issues contained in the article and the implementation of any actions.

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