Making Tax Digital – March 2017 Budget update
Post Author:
Angie Harvey
Date Posted:
March 9, 2017
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The Government have announced a delay in Making Tax Digital (MTD) for some businesses and landlords in the March 2017 budget. MTD will replace the annual Tax Return for most businesses and landlords and will require the DIGITAL reporting of financial information QUARTERLY to HM Revenue & Customs (HMRC).
As detailed in our blog of 27 February 2017 the original plan was for income tax information for all businesses, the self-employed and landlords with turnover in excess of £10,000 to be reported digitally each quarter with effect from April 2018. MTD will also affect all VAT registered businesses, companies and charities with trading subsidiaries.
The Chancellor has now announced a delay of one year for businesses, self-employed people and landlords with turnover of less than the VAT threshold of £85,000. Businesses, self-employed people and landlords with turnovers under £10,000 continue to be exempt from MTD.
The proposed timetable for the reporting of information to HMRC under MTD is now as follows:-
| From April 2018 | Income tax information for businesses, the self-employed and landlords with turnover in excess of £85,000 (except for partnerships with turnover of more than £10m) |
| From April 2019 | Income tax information for businesses, the self-employed and landlords with turnover between £10,000 and £85,000 |
| From April 2019 | VAT information (affecting all VAT registered businesses) |
| From April 2020 | Corporation tax information (affecting all companies and charities with trading subsidiaries) and Income tax information for partnerships with turnover of more than £10m |
You can read more about MTD in our earlier blog:- Making Tax Digital (MTD); Proposed plans from 2018! or if you wish to discuss in more details, please get in touch on 0131 317 7377 when you will be put through to one of our team.
Photo by Petr Sejba under licence Creative Commons Licence
