The government has announced major changes to the Making Tax Digital proposals- again!
Put on hold while we had the election, the changes now announced mean that MTD will affect far fewer people in the next couple of years than the initial plans.
MTD will initially now only apply for VAT.
Self-employed individuals who are VAT registered will have to file under MTD from 2019 – so they will need to file quarterly returns from MTD compatible software.
Other self-employed individuals and landlords will now not have to keep digital records, or update HMRC quarterly until at least 2020.
There is no news on the timetable for companies, but it will be at least 2020 before they need to comply.
This delay will give small business more time to make the transition to digital and is welcome news to many.
Having said that 2020 is not that far off, and clients who are switching to cloud accounting are benefiting from the real time information it brings them about their business – and the time savings made from being able to scan receipts on the go, and no longer living in dread of “accounts day!”
For more information please contact Rosie Forsyth.