We wrote about MTD in our previous newsletter and predicted that if past performance is anything to go by, HMRC might not be ready for their own deadline. Sure enough, in the Spring Budget it was announced that there would be a one-year deferral of the mandating of Making Tax Digital for Business, for unincorporated businesses and landlords with turnovers below the VAT threshold. This means that only those businesses, self-employed people and landlords with turnovers in excess of the VAT threshold with profits chargeable to Income Tax and that pay Class 4 National Insurance contributions will be required to start using the new digital service from April 2018.
Exact details of what will be required are still sketchy and there are rumours that HMRC might have to consider allowing smaller businesses to continue to keep their records on spreadsheets.
We’ll be keeping an eye out to make sure that our clients are ready, whatever MTD finally looks like.