On Friday the Government announced a number of significant changes to the Making Tax Digital (MTD) Timetable. The previous timetable for MTD implementation was as follows:
April 2018: quarterly reporting of income tax for unincorporated businesses and landlords with a turnover above £85,000
April 2019: quarterly reporting of VAT and income tax for both incorporated and unincorporated businesses.
April 2020: quarterly reporting of corporation tax.
And here's the new timetable:
- Only businesses registered for VAT will need to keep digital records and only for VAT purposes from April 2019.
- Businesses will not be asked to maintain digital records or update HMRC quarterly for other taxes until April 2020 (This was moved back from April 2019).
The new timetable will provide the software industry with sufficient time for testing and implementation, this is necessary given the scope of the changes mandated by MTD.
QuickFile remain committed to helping our users transition over to MTD when the time comes and with as little friction as possible. Those already managing their accounts using QuickFile will already satisfy the digital record keeping provision.
We have also started working with HMRC to develop our first Periodic Update report, supporting both cash and accrual based accounting. This report is currently in the test phase and will be available to tryout from early August.
That's it for now, we'll keep you posted on any other MTD related developments as they happen.