Making Tax Digital
Digital tax payments put on hold for businesses 17 July 2017
Ministers have confirmed a new timetable for Making Tax Digital as they set out the next steps for the Finance Bill.
The government has listened to concerns raised by parliamentarians, in particular the Treasury Select Committee, businesses and professional bodies about the pace of change and is taking steps to ensure a smooth transition to a digital tax system.
Roll out for Making Tax Digital has been amended to ensure businesses have plenty of time to adapt to the changes.
Under the new timetable:
• only businesses with a turnover above the VAT threshold (currently £85,000) will have to keep digital records and only for VAT purposes and they will only need to do so from 2019 • businesses will not be asked to keep digital records, or to update HMRC quarterly, for other taxes until at least 2020. Making Tax Digital will be available on a voluntary basis for the smallest businesses, and for other taxes. This means that businesses and landlords with a turnover below the VAT threshold will be able to choose when to move to the new digital system.
As VAT already requires quarterly returns, no business will need to provide information to HMRC more regularly during this initial phase than they do now.
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.
HMRC are fully committed to supporting businesses in this transition. HMRC has already begun piloting the Making Tax Digital services and will continue to do so, testing the system extensively with businesses. It will start to pilot MTDfB for VAT by the end of this year, 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.
The MTD policy paper has been updated to reflect current policy position and timescales.
Back to Contents
Making Tax Digital ‘Talking Points’ 24 April 2018
HMRC is running a Talking Points meeting on the Making Tax Digital (MTD) income tax pilot, which explains how to sign up for your Agent Services Account, sign up your client for the pilot and submit quarterly updates for income tax using MTD Software.
Choose a day and time to suit.
Making Tax Digital (MTD) – Signing up to the Income Tax pilot
Thursday 26 April - midday to 1pm - Register now Thursday 26 April - 2.30pm to 3.30pm - Register now Friday 27 April - 10am to 11am - Register now Friday 27 April - 12.30pm to 1.30pm - Register now
You can ask questions, either 24 hours before the meeting to the email address below or on the day using the onscreen text box.
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
Page 343 of 598
Made with FlippingBook - Online magazine maker