I have spent most of this week helping my youngest daughter and her partner decorate, fix fences and gates, and otherwise indulge my love of DIY! Today, I am back at my PC.
And yesterday, at long last, we have the summer budget, or at least it is clear that the rolled over sections of the March Finance Bill will be reinstated, but, and its a BIG but, the government have listened and learned and decided that the roll-out of MTD will now be at a somewhat slower pace. They say:
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
- 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.
At least we now know what to expect. You can view the recent press release here.
Further announcements in the statement confirm:
Ministers also confirmed today that the Finance Bill will be introduced as soon as possible after the summer recess. This will legislate for all policies that were included in the pre-election Finance Bill, raising over £16 billion across the next five years to fund our vital public services.
The government has also re-confirmed that all policies originally announced to start from April 2017 will be effective from that date.
One can only imagine the “upset” of accounting software providers as they reschedule launch timetables for their MTD-ready software.