Making Tax Digital in United Kingdom delayed
The UK Government announced on July 13th 2017, that its Making Tax Digital (MTD) reforms would be delayed until 2019.
The aim of introducing the programme is to reduce the tax gap while making it easier for individuals and businesses to get their tax right and keep on top of their affairs.
What is the Making Tax Digital reform?
In the UK, every individual and business now has access to their own personalised digital tax account. The aim is to make the UK one of the most digitally advanced tax administrations in the world, modernising the tax system.
In 2019, only businesses over the VAT threshold (currently £85,000 or US $110,600) will have to keep digital records. These records will only be required initially for VAT purposes, and only from April 2019. Businesses will not have to keep digital records or report quarterly for other taxes until April 2020 at the earliest. MTD will be available on a voluntary basis for businesses below the VAT threshold, and for other taxes.