Posted 18 July 2017 By Dominic Bourquin, Corporate Tax Partner
The government has yielded to pressure over the timetable for the introduction of Making Tax Digital, and has now postponed its plans by at least two years. This means the earliest that the system instigating the quarterly reporting of information by individuals and businesses to HMRC comes into effect will be 2020.
However, they are still planning to commence mandatory digital quarterly VAT reporting from 2019. Many businesses are already complying with this requirement, so this should be less of an issue, but those businesses that do not hold their records digitally will need to review their systems.
The postponement of the headline reporting measures will help most businesses to plan for the new digital system, to ensure that they have upgraded their financial systems to facilitate digital reporting. The previous timescale proposed was extremely tight, and it is good news that common sense has prevailed.
We will keep you updated with respect to any developments on the implementation progress of Making Tax Digital.
If you would like to discuss the changes or your requirements and obligations under the new proposed regime, please get in touch with your usual Monahans contact, or contact us for further information.