They have revised the timescale following feedback from businesses, accountants and Parliament. This is good news because it means that businesses will now have more time to implement the changes required. Similarly, many smaller businesses or self-employed individuals will not have to implement the changes at all.
Firstly, only businesses with a turnover above the VAT threshold will be required to keep digital records. Furthermore, these records only need to be kept for VAT purposes and you won’t have to do this until 2019, which is a year later than initially planned.
Businesses will not need to keep any digital records or provide quarterly updates to HMRC for other taxes until at least 2020. This date is at least 2 years later than originally announced.
Finally, small businesses will have the option to file digitally for other taxes. However, this will be done on a voluntary basis.
Here at Whyfield, we think that this is good news. A reduction in the scope of the Making Tax Digital changes means that individuals and smaller businesses are much less likely to be affected. The increased timescales mean that there will be much less pressure on SMEs to rapidly implement new systems in order to comply with their tax obligations.
That said, we do think that digital tools can help to maximize the efficiency of your business. After all, they can save time and aid organisation. Therefore, we think that it is a great idea to start to plan for this deadline. A gradual move towards digital record keeping can be much less stressful than an immediate switch.
The Whyfield team can help you to find and set up a suitable digital record keeping system that meets your needs. We can also teach you how to use it and provide ongoing support, so that you are ready for these changes ahead of time.
As always, if you have any questions or queries then you are welcome to get in touch on (01872) 267267.