A pilot for Making Tax Digital for VAT was introduced at the end 2017 and started with small-scale, private testing. This has now been followed by a wider, live pilot. This will allow for well over a year of testing before any businesses are mandated to use the system. No business will be mandated before 2019.
From April 2019 businesses above the VAT threshold will be mandated to keep their records digitally and provide quarterly updates to HMRC for their VAT.
The government has committed that it will not widen the scope of Making Tax Digital for Business beyond VAT before the system has been shown to work well, and not before April 2020 at the earliest. This will ensure that there is time to test the system fully and for digital record keeping to become more widespread.
HMRC say ‘We will continue to work in close partnership with the software industry and agents to ensure successful implementation of Making Tax Digital for Business’.
Leave a Reply