Government delays introduction of digital tax measures

Business groups have welcomed the government’s decision to delay for two years the introduction of new compulsory requirements to report income and expenditure quarterly online.

Making Tax Digital (MTD) will introduce digital record-keeping and quarterly updates for the majority of businesses, self-employed people and landlords from 2019.

See also: How online tax reporting will challenge farm businesses

However, under the new timetable only businesses with a turnover above the VAT threshold (currently £85,000) will have to keep digital records and then only for VAT purposes from 2019.

There will be no requirement to keep digital records or to update HMRC quarterly for other taxes until at least 2020.

“This is welcome news for businesses, particularly those that were originally going to be affected as early as April next year,” said Cumbria-based accountant Dodd & Co.

Are you, like many other farms, missing out on tax claims for R&D?

If you’re a limited company, you could be eligible for tax credits if you’re carrying out R&D on your farm. For more information and to find out if you’re eligible visit our R&D tax credits page.

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