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.
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.