Following the announcement of a snap general election to take place on 8 June 2017, the Government dropped clauses relating to Making Tax Digital from the Finance Bill 2017 so that it could quickly receive approval from MPs before Parliament dissolved. The policy is now on hold until after the election.
While Making Tax Digital is currently on hold, the Government has said that the clauses dropped from the Finance Bill remain policy and it intends to put forward legislation at the start of the new Parliament to enact them.
We will update this page as details of any new legislation are announced after the election.
HM Revenue & Customs (HMRC) has decided that all tax systems in the UK will need to be 100% digital by 2020.
The news comes as part of a £1.3billion project dubbed ‘Making Tax Digital (MTD)’ which, simply put, is the most significant change to tax filing made by the Government in a generation.
All businesses, landlords and self-employed taxpayers with an annual turnover of £10,000 or more will be required to register, file, pay, and update their information online each quarter under MTD.
The timetable for the phased introduction of quarterly reporting is as follows:
- April 2018 – Businesses with profits chargeable to Income Tax and pay Class 4 National Insurance contributions (NICs), with turnovers in excess of the VAT threshold (£85,000)
- April 2019 – Businesses with profits chargeable to Income Tax and pay Class 4 NICs, with turnovers below the VAT threshold (£85,000)
- April 2019 – Businesses that are registered for and pay VAT
- from April 2020 – Businesses that pay Corporation Tax (CT)
Businesses, self-employed people and landlords with annual turnovers of less than £10,000
are exempt from these requirements, as are charities, but not their trading subsidiaries.
Businesses will only have 12 months to become familiar with the changes before late submission penalties will be applied, so it is important that they seek help sooner rather than later.
Fortunately, The Fish Partnership are here to help.
Digital Tax Accounts: How can we help?
For most, Making Tax Digital (MTD) is compulsory, and The Fish Partnership understand that busy British businesses and self-employed taxpayers will want to go digital, quickly, easily and with minimum hassle.
HMRC has promised to make the changeover to online tax accounts as smooth as possible, but The Fish Partnership believe that it is important to be one step ahead of the game, and not get left behind.
Which is why we are inviting you to sign up to our online accounting solutions – the perfect answer to the MTD situation.
By signing up today, you can set up an online account, and enjoy the benefits of quickly and effectively managing your finances on the move, as and when it suits you.
Better still, our specialist tax advisers will be on hand, should any issues, queries or tax uncertainties arise.
For more information about our online accounting solutions, please click here.