The Spring Statement delivered some good news for small business with the announcement that the scope of Making Tax Digital (MTD) will not be expanded to include business with a turnover below the VAT threshold in 2020. From 1 April 2019, VAT registered businesses with a turnover over the registration threshold of £85,000 have been required to maintain digital records and to file their VAT returns using MTD compatible software.
Furthermore MTD will not be expanded to include other taxes in 2020 however; HMRC still plan to roll out MTD for Self Assessment and Corportation Tax but not until 2021 at the earliest.
Please contact us should you have any questions about Making Tax Digital and how you and your business can get ahead of the legislation.