Are you prepared for Making Tax Digital?
In his Spring Budget, Chancellor, Philip Hammond, announced that Making Tax Digital (MTD) would become a reality and would start to be implemented from April 2018.
Following the announcement of the General Election, the Government dropped clauses relating to Making Tax Digital from the Finance Bill 2017, in order to ensure key aspects of the Bill received approval from MPs before Parliament was dissolved.
This means that Making Tax Digital is now on hold until after the election.
Despite the fact that the legislation needed to enact Making Tax Digital is currently suspended, Theresa May’s Government has said that the clauses dropped from the Finance Bill remain policy and that, subject to their being re-elected, they will bring forward legislation at the start of the new Parliament to enact the MTD legislation.
Assuming Making Tax Digital will go ahead, it is important for businesses and individuals to understand the implications for them.
This is the biggest change to the UK tax system since the introduction of Pay-as-you-Earn in 1944.
For the first time ever, HMRC are insisting that your records are kept digitally and that the software you use has the ability to submit quarterly information direct to HMRC.
To help you understand what Making Tax Digital means for you and your business, we answer the most frequently answered questions here.
In the meantime, if you have any further questions or would like to know how you can prepare for MTD, please do not hesitate to contact the team at Milsted Langdon.