Its good news for customers and technology providers. The delay will hopefully buy time for many businesses that were looking at MTD compliance only, enabling them to take a breath and review how they approach Phase 2 of MTD.
A Lords committee has called for a delay of at least one year to the mandatory rollout of Making Tax Digital for VAT, asserting that HMRC has neglected its responsibility to support small business and claiming costs will be far more than the government’s impact assessment
The message from the Chancellor was that ‘this is a budget that shows the British people that the hard work is paying off.’... well that what he claims!
MTD starts for VAT from April 2019, but HMRC will be happy to collect penalties from those that miss the deadline. VAT registered traders need to plan now and act soon to make sure they are ready.
With gloomy forecasts of the economy and poor growth plus ever increasing costs of Brexit the Chancellor had little room for manoeuvre. His report set out a number of actions the government will take including support for more house building. The major attention-grabber was aimed at first time buyers who will not have to pay Stamp Duty Land Tax on homes costing up to £300,000 but this may backfire with increased house prices.
We are busy planning and preparing to make sure we and our clients are ready for Making Tax Digital (MTD) and it’s big brother MTDfB.
The government have issued information on how Making Tax Digital for Business (MTDfB) is expected to work for VAT once the rules are introduced in April 2019.
Cyfan sydd ei angen yw i'r trethdalwr i gofrestru i ddefnyddio eu cyfrif treth. Gellir cyflawni hyn trwy fynd i www.gov.uk / personol-dreth-gyfrif (bydd chwiliad Google syml fynd â chi yno).
All that is required is for the taxpayer to register to use their tax account. This can be achieved by going to www.gov.uk /personal-tax-account (a simple Google search will get you there).
Heeding concerns across the accounting spectrum, and weakened by their reduced majority, the government has amended the timetable and implementation intakes of Making Tax Digital.
Under the reformed timetable, only businesses with a turnover above the VAT threshold (£85,000) will have to keep digital records, and only for VAT purposes, starting from 2019. Businesses will not be asked to make the switch to Making Tax Digital and update HMRC quarterly for other taxes until at least 2020.
The The chairman of the House of Lords Economic Affairs Committee, has said that the committee was “very puzzled” by the government’s cost estimates to businesses for implementation of the Making Tax Digital initiative.
SERIOUS CONCERNS over HMRC’s digital plans have been voiced by the Public Accounts Committee (PAC).