All businesses who are VAT registered with a taxable turnover above the VAT threshold will have to be ready to file under the Making Tax Digital for VAT regime from 1 April 2019.
This will still come into force from that date and remains unchanged.
However, the Chancellor of the Exchequer has updated the timetable for the future rolling out of Making Tax Digital.
Those businesses and individuals who were expecting to come under the Making Tax Digital regime in 2020 will not now have to do so until at least April 2021 (or it could be even later than this).
This group comprised VAT registered businesses (limited companies, sole traders and partnerships) with turnovers of less than the VAT threshold, non-VAT registered businesses and individuals who come under the self assessment regime.
The government has advised that they are delaying the roll out of Making Tax Digital for Corporation Tax and Making Tax Digital for Income Tax until they are sure that the Making Tax Digital for VAT system is working.
This announcement was only made in the written response and did not form part of the Chancellor’s Spring Statement speech which was delivered to Parliament on 13 March 2019.
Many businesses and individuals can now breathe a sigh of relief at this temporary reprieve!
To find out more about what was hidden in the Chancellor’s Spring Statement written response, click here:
15 March 2019