Making Tax Digital Delayed until 2020
The Treasury have delivered what is potentially good news for many (yes, you have read that correctly). Making Tax Digital, or MTD to give it its affectionate moniker, has been both delayed and reduced in terms of requirement.
For businesses that are VAT registered, VAT returns will still have to be submitted via MTD compatible software from 1 April 2019, but in terms of quarterly reporting for tax and national insurance (NI) purposes, MTD has been delayed until at least April 2020.
The new timetable for income tax and NIC reporting is as follows, although the £85,000 small business threshold is subject to change.
Annual turnover | Old timetable | New timetable |
Over £85,000 | 6 April 2018 | At least April 2020 |
From £10,000 – £85,000 | 6 April 2019 | At least April 2020 but on a voluntary basis |
Companies | 1 April 2020 | At least April 2020 |
It appears that the Government have quite enough on their plate without launching MTD and undoubtedly many taxpayers will welcome the delay!
Please note: This article is a commentary on general principles and should not be interpreted as advice for your specific situation.
