Making Tax Digital
Updated 13 July 2017
The government has embarked on a digital strategy that will transform the UK tax system, this will have a direct impact on how business owners maintain and submit their financial information.
HMRC announced on 13 July 2017 that the timetable for Making Tax Digital has been pushed back from the originally set out dates.
What is the new timetable?
The new timetable for keeping tax records has currently been set as follows:
|Businesses with a turnover above the VAT threshold (currently £85,000) will have to keep digital records and only for VAT purposes||From 2019|
|All Businesses to maintain digital records for other taxes||Not until 2020 (at the earliest)|
All businesses and landlords will have at least two years to adapt to the changes before being asked to keep digital records for other taxes.
These changes will be legislated for as part of the Finance Bill 2017. Changes to VAT reporting will come into effect from April 2019. From that date, businesses above the VAT threshold have to provide their VAT information to HMRC through Making Tax Digital software.
What will be required under Making Tax Digital?
Once implemented, businesses and landlords will be required to maintain all tax records digitally and submit up to date financial information on a quarterly basis to HMRC using this software.
A final annual submission will be made to adjust for Capital Allowances and year-end adjustments.
At Grafton Jones we support the vision of a digital tax system and as such are dedicated to helping our clients with their digital requirements. With the additional time given by HMRC this is now the perfect opportunity to get ahead of the game and get the software which is right for you.
We will support any digital software you are currently using or wish to use.
Please contact us if you wish to discuss your software options or require further information on products available.