Making Tax Digital
Making Tax Digital (MTD) is a new system being proposed by government. The new system will require businesses to keep their records in a digital format and submit quarterly updates to HMRC followed by an end of year reconciliation. For many taxpayers, this would take the place of their annual tax return.
It is proposed that all businesses (except the very smallest, with a turnover under £10k per year and those considered to be 'digitally excluded') be required to start this form of record keeping and reporting for income tax and National Insurance from 1 April 2018 or 1 April 2019, depending on their size, and for VAT from 1 April 2019.
Draft legislation on this is due soon, for implementation in 2018.
We are working with other business bodies to ensure government is aware of the potential impact and costs to business and that they pilot the proposals before mandatory implementation.