The government has announced that digital tax reporting for unincorporated businesses and landlords will start in April 2018, despite calls for it to be delayed.
But there will be relaxations from what had originally been planned. The government has published its responses to its consultations in 2016.
As a result of the many thousands of representation made on Making Tax Digital, the following key changes will now be implemented:
The government says it will consider further issues such as the initial exemption threshold under which businesses will not have to report digitally. The currently proposed exemption is for turnovers below £10,000. However, many calls have been made for the threshold to start at the VAT registration threshold of £83,000 so that the smallest businesses are not affected.
Final decisions will be made by the government before legislation is laid later this year.
In anticipation of the new digital regime, Bishop Fleming has launched Accounting Solutions, so that clients can be up to speed with HMRC’s requirements before they become mandatory, and have at their fingertips all their financial information in real time and in a meaningful form. More information is available from our dedicated website or from your usual Bishop Fleming adviser.
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