Making Tax Digital - what do you need to know?

Making Tax Digital (MTD) is a key part of the Government’s plans to make it easier for individuals and businesses to get their tax right and keep on top of their affairs – eventually meaning the end of the annual tax return for millions.

MTD will affect individuals, businesses, trusts and companies. Eventually everyone (and every business) will have their own online tax account.

New timetable for Making Tax Digital

Original plans required some businesses to be signed up to MTD requirements by April 2018. However, after listening to concerns raised by industry experts about the pace and scale of change, the Government announced a new timetable for the roll out of MTD in July 2017.

Under the new timetable:

  • Only businesses with a turnover above the VAT threshold (£85,000) will be asked to keep digital records, for VAT purposes only, from April 2019.
  • Businesses will not be required to keep digital records, or update HMRC quarterly, for other taxes until at least 2020.
  • Businesses and landlords with a turnover below the VAT threshold will be able to choose when to move to the new system.

HMRC has already started to test the MTD services and plans to start piloting the Maxing Tax Digital for Businesses for VAT by the end of 2017. 

We’re on the ball

Change is coming and we’ll be ready for it. The team at Johnston Carmichael will be keeping a close eye on digital tax developments and will provide you with regular updates on HMRC’s digital agenda.

Got a question?

If you have any questions at this stage, please contact Susie Walker, Head of Tax, at: Susie.Walker@jcca.co.uk.



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