Making tax digital
This blog is based on points from the Chancellor’s 2017 Budget.
Firstly, there is no mention in the Budget about “making tax digital”. We must therefore assume unless told otherwise that the Government still intends to enforce “making tax digital” on all VAT registered businesses from 2019, and upon all other businesses from some date to be set in the future. It is believed that businesses with a turnover of less than £10,000 per annum will be exempt, however that is not certain as yet.
If you are VAT registered, I suggest that you get in touch with us as soon as possible to discuss the next steps that you might want to take. As you will see from the website, we support three different online software packages (Quick Books, Xero, and Free Agent) as well as Receipt Bank and Auto Entry, which are basically document handling software that work with all three. We suggest you computerise your records sooner rather than later so as not to be left behind in the rush when the Government in due course makes it compulsory.
You will note that the year 2019 is given as the date for the commencement of making tax digital by VAT registered businesses. That year is of course the year that we will be (according to plan) leaving the European Union, and I think the general theme of Government announcements will be to bring forward as little legislation as possible until after we have left Europe. All measures currently in place from previous legislation, such as the restriction on mortgage interest relief for buy to let landlords, will therefore almost certainly remain in place.
Please obtain specific advice from ourselves if in doubt. No responsibility is taken for any act or omission on your part on reading this without further advice.
– By Stephen Handley, FCCA