If you are self-employed or a landlord with turnover below the £85,000 VAT threshold, the government has announced a one-year deferral from having to comply with the making tax digital (MTD) requirements. You will now not be required to start using the new digital service until April 2019.
However, there has been no reprieve for those whose turnover exceeds the VAT threshold – the start date remains at April 2018. Companies will not become involved with MTD until April 2020.
Although the MTD legislation was left out of the pre-election Finance Act, there is no indication that this will affect the MTD timetable. There is much debate, however, about how MTD will work in practice.
This newsletter is for general information only and is not intended to be advice to any specific person. You are recommended to seek competent professional advice before taking or refraining from taking any action on the basis of the contents of this publication. The newsletter represents our understanding of law and HM Revenue & Customs practice as at 2 May 2017.
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