Philip Hammond stated that Making Tax Digital would be deferred by one year until April 2019 for unincorporated businesses and landlords with turnovers below the VAT registration threshold of £85,000.
This is intended to provide them with additional time to prepare for digital record keeping and quarterly updates.
At the date of writing, Making Tax Digital will be rolled out as follows:
April 2018 – Quarterly reporting will begin for businesses (including landlords) who have a turnover above the VAT registration threshold of £85,000.
April 2019 – Quarterly reporting for businesses (including landlords) who have turnovers under the £85,000 VAT registration threshold. Digital quarterly reporting for VAT is also due to start.
April 2020 – Quarterly reporting for companies will be introduced. Businesses, self-employed people and landlords who have a turnover below £10,000 are exempt from these requirements. If you are in employment and have secondary income of more than £10,000 per year through self-employment, you will also need to use the digital service.
If you do not have a 5th April accounts year end your obligations may be slightly different.
Please be aware that the dates listed above may be subject to change following the snap General Election on 8th June and feedback from a pilot scheme which began on 3rd April 2017.
If you need more information and help getting your business ready for Making Tax Digital, call us today on 0800 0523 555.
By Jo Nockels
Disclaimer: Advice shared in this blog is intended to inform rather than advise. Taxpayer's circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this forum, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.