Making Tax Digital – The New Timetable

The delay in the implementation of the Government’s flagship quarterly reporting tax system, Making Tax Digital (MTD), has been welcomed by accountants, Clive Owen LLP.

Thanks to vociferous opposition at the Government’s plan to introduce MTD from April 2018, the plans have been delayed, so that businesses have sufficient time to adapt.

The announcement of the delays has followed months of uncertainty, after the proposals were initially announced at the Spring Budget only to be subsequently withdrawn from the Finance Bill due to the General Election.

Lee Watson, tax director at Clive Owen LLP, said: “The profession has breathed a sigh of relief that HMRC have delayed the introduction of MTD, following representation from professional bodies, tax agents and other groups.

The delays announced allow both businesses and the accountancy profession time to adapt to the proposals.

As a firm, our dedicated cloud accounting team have helped numerous clients convert to cloud accounting packages and we will continue to do this to ensure that our clients are ready for MTD. As well as being compliant with MTD the packages offer a variety of businesses benefits which should be explored.”

Businesses will now have until April 2019 to get ready to file VAT information via the MTD system with the filing of income and expenses, for income tax or corporation tax, starting from April 2020, at the earliest.

Lee added: “MTD is one of the most significant changes to the tax system in over 20 years and has huge implications for businesses. It is clear that future of record keeping is digital and it is imperative that anyone affected by MTD begins to plan for the future now.”