The government has announced big changes to its Making Tax Digital for business proposals: In the beginning it will only apply for VAT. VAT registered businesses will be forced to join HMRC’s plans for quarterly bookkeeping and reporting for VAT only from April 2019. Making Tax Digital will not become compulsory for other business or taxes until 2020.
Proposed updated timetable:
- VAT registered businesses, with turnover over the VAT threshold will be mandated into the Making Tax Digital reporting system from April 2019 for VAT only.
- Property landlords and small business trading below the VAT threshold will join Making Tax Digital from 2020, although they may opt in to Making Tax Digital earlier if they wish to do so.
- There is no news on what is proposed for companies, however the government is currently looking at reform of corporation tax.