In a recent announcement, the government has adjusted the timetable and implementation of its much publicised Making Tax Digital (MTD) scheme. Originally facing delays due to the snap election, it has now been confirmed that MTD will continue to be rolled out, however at a slower pace than predicted.
The further delay now means now that most businesses will not be affected until 2020, at the earliest. Under the reformed timetable, businesses with a turnover above the VAT threshold (£85,000) will be required to keep digital records, and only for VAT purposes. This will continue as expected and be implemented in 2019.
Companies earning below the VAT threshold will be exempt until at least 2020. According to research from Startups.co.uk, three million of UK’s smallest businesses will be given additional time to commence digitising their records.
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