Deadlines and compulsory filing

Deadlines and compulsory filing

The Making Tax Digital roadmap was first published in December 2015 and set out the Government’s initial plans for digitising the tax system.

However recent concerns about the pace and scale of change have been expressed. As a result the government has announced that the roll out for Making Tax Digital for Business has been pushed back to ensure businesses have plenty of time to adapt to the new proposals.

Key dates include:

March 2017 onwards…

The government will re-introduce the legislation to give effect to Making Tax Digital for business that was published in the Finance Bill after the Spring Budget.

August 2017 onwards…

The first businesses have already started keeping digital records and providing updates to HMRC as part of a live pilot to test and develop the Making Tax Digital service for income tax and national insurance contributions and we will continue to expand this pilot.

December 2017

The Government will then start to pilot Making Tax Digital for VAT by the end of this year (2017)  starting with small-scale, private testing, followed by a wider, live pilot starting in Spring 2018. This will allow for well over a year of testing before any businesses are mandated to use the system. No business will be mandated before 2019.

Spring 2018

Wider test pilots due to begin for MTD for VAT.

April 2019

From April 2019 businesses above the VAT threshold (currently £85k) will be mandated to keep their records digitally and provide quarterly updates to HMRC for their VAT.

The government have promised to continue to work in close partnership with those providing solutions in the software industry and accountants to ensure successful implementation of Making Tax Digital for Business.

January 2020

By 2020 (if the government achieves its aim) all UK businesses and individual taxpayers will be able to register, file, pay and update their information 24/7, 365 days a year. For the vast majority of taxpayers, there will then be no need to fill in an annual tax return

We are aiming to help our clients by forewarning them about the problems and horror stories they will face.

We will do this by providing a range of solutions you can learn more about by clicking the links below.

I would like to keep a step ahead of these time frames please contact me soon click here to arrange a free no obligation chat.

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