HMRC last week announced significant changes to the roll-out of its Making Tax Digital scheme, which was due to go live from April 2018.
The scope and timetable have now been pared back following feedback and concerns about the broad scope and short timescales from parliamentary bodies, businesses, the accounting profession and software companies, including Xero.
Only businesses with a turnover above the VAT threshold 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 update HMRC quarterly for other taxes until at least 2020, instead of 2018 as originally proposed.
Small businesses will be able to file digitally on a voluntary basis for other taxes.
For more information on the timetable for Making Tax Digital you may like to watch the video by Gary Turner, the Xero MD & co-founder which can be found here.
Although the roll out has been delayed, Hilden Park Accountants still believe it is only a matter of time before all businesses will be reporting digitally, therefore if you would like to discuss moving your book-keeping records to Xero or any of the issues raised in this email or video please do get in touch.