At last someone is listening!
In the latest announcement from the Government about their Making Tax Digital strategy there is an acknowledgement of the widely held concerns about the pace and scope of the proposed changes to the tax reporting systems.
New parameters and a new timetable have been announced as follows:
- only businesses with a turnover above the VAT threshold (currently £85,000) will have to keep digital records and only for VAT purposes
- they will only need to do so from 2019
- businesses will not be asked to keep digital records, or to update HMRC quarterly, for other taxes until at least 2020
This is a significant relaxation of the previous proposals and will be widely welcomed by businesses and the accounting profession. It allows much more time for systems to be tested and for businesses to prepare themselves for the changes.