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MTD update on 20 July 2017
You will be forgiven if the imminent introduction of making tax digital (MTD) has slipped your mind. There has been a lot going on. However, to recap, the Government had planned to require some self-employed businesses, as well as landlords, to make quarterly returns of their income and expenses to HMRC from April 2018. The original legislation introducing MTD was stripped out of the 2017 Finance Bill as the Government felt there was insufficient time to debate any controversial measures prior to the General Election.
A second 2017 Finance Bill has just been announced which reintroduces MTD but with some significant changes. Simply put, the Government has listened to the concerns of the profession – including ourselves. This has resulted in the following changes: Businesses with turnover in excess of the VAT threshold (currently £85,000) will need to report quarterly from April 2019 but only for VAT purposes. In reality this means that such businesses need only ensure that they are meeting the digital record keeping requirements of MTD as they will already be making quarterly reports for VAT.
- Those businesses will not have to report information to HMRC quarterly in regards other taxes until 2020 at the earliest
- These changes are very welcome. We will be contacting each of you that are affected to start the process of making you and your business MTD ready at the right time
There will be further releases concerning the other deferred clauses from the initial 2017 Finance Bill shortly. CBW will, as always, keep a close eye on developments over the coming weeks and months as decisions are made by our Government, and crucially communicate what we believe these will mean for our clients and contacts.
CBW’s solution to Making Tax Digital
CBW has developed a simple and cost-effective online solution that will streamline the process and reduce the financial impact to you – CBW’s online solution.
There are a range of different options and levels of support to suit your business requirements.
If you would like to discuss the latest from the Finance Bill and the changes to MTD, please contact a member of the CBW team at email@example.com or 020 7309 3800. We will running a number of seminars and webinars throughout 2017 and 2018 to update our clients and contacts on the changes to MTD.