Making Tax Digital (MTD) is a scheme proposed by H M Revenue & Customs that imposes new quarterly filing and potentially payment obligations for businesses and landlords.
The scheme has come in for heavy criticism since it was first announced from business leaders as well as a number of leading professional bodies and after much anticipation , it was announced in the Spring Budget of 2017, that MTD will be postponed by one year, (i.e to 2019) for those Self Employed and Landlords who have a turnover under the VAT threshold. This announcement came after the MTD provisions were cut from the Finance (No 2 ) Bill 2017 due to the decision to call an early general election.
The updated timetable for the implementation of MTD is now as follows:
2019 : VAT registered business are mandated into MTD
2019/2020 all businesses may try MTD on a voluntary basis
2020: Non – VAT registered unincorporated business and landlords join MTD
2020 + ? Companies and Large Partnerships to join MTD
(Businesses with a turnover of less than £10,000 are excluded from MTD)
It is expected that further changes will be made to the original proposals before the scheme is finally introduced, so watch this space for further updates!