The Government’s plan to shift tax online has been hit with a further delay, with most businesses now not being affected until 2020 at the earliest.
The new timeline for Making Tax Digital (MTD) means only those businesses earning over the VAT threshold (currently £85,000) will need to file digitally starting in 2019 – and only for their VAT.
Businesses outside of this group won’t be affected by MTD until at least 2020.
The amended timeline comes after plans for MTD were dropped from the Finance Bill following the snap election earlier this year.
Chris Barnard, Senior Accounting Technical Manager at Crunch, commented:
“The further delay was somewhat inevitable, but businesses – and their accountants – should prepare for the switch to digital tax returns sooner rather than later.
“MTD has the potential to massively simplify tax returns and make it easier for accountants to provide bespoke advice based on their clients’ business activity. If implemented correctly and securely, this will allow businesses to spend more time concentrating on what they do best.”