Making tax digital deferral

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.