BREAKING NEWS - MAKING TAX DIGITAL DELAYED
The Government announced yesterday that quarterly reporting for income tax and corporation tax will be delayed until “at least” April 2020.
This announcement came as a relief to us and will be welcomed by businesses and landlords, many of whom were previously having to get ready to implement MTD from as early as April 2018.
Originally, HMRC planned to mandate the use of of digital tax records for businesses by April 2018, but concerns were raised that the deadline did not provide enough time for “such a fundamental change”.
However, the one area which has not been postponed is the switch to VAT returns being made via the MTD system from April 2019. This means that all VAT registered businesses with turnover above the VAT threshold, whether companies or unincorporated, are still likely to need MTD compatible software to be up and running by that time.
At Childminding accountancy services we still are able to offer cloud based digital record keeping software to our clients, and have spent some time implementing this as we see its advantages in the long term.
With MTD off the agenda for now, it may still be the right time to reassess your accounting software, and decide whether you have the right package in place. To that extent, the postponement of MTD won't make a huge amount of difference to our work with clients on digital software.
We are looking forward to now concentrating on those clients whom haven't yet migrated onto cloud software at a pace that is suitable for them.
Some of our clients have already seen a real benefit from using our chosen cloud software and we will still encourage our clients to embrace change to be ready for the inevitable!
The new time table for MTD can be read below
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