Mel Stride MP, Financial Secretary to Treasury has confirmed today that the Government will delay plans for the roll out of their Making Tax Digital tax reforms by one year to 2019.
Under the new timetable:
- only businesses with a turnover above the VAT threshold (currently £85,000) will have to keep digital records and only for VAT purposes
- they will only need to do so from 2019
- businesses will not be asked to keep digital records, or to update HMRC quarterly, for other taxes until at least 2020
ACS chief executive James Lowman said: “We welcome that the Government have listened to the concerns of local shops across the country and delayed the implementation of the reforms. All our evidence suggested that the cost and administrative burden of Making Tax Digital had not been fully assessed and prepared for.
“The delay will give the Government more time to pilot the reforms and business more time to prepare for the changes. We are committed to working with the Government on the Making Tax Digital proposals with the new timetable in place.”
ACS’ submission to the Making Tax Digital reforms consultation and our appearance in front of the House Of Lords Finance Sub Committee are available in the lobbying section of the ACS website.