No extension to MTD in 2020

The Government has confirmed it will not be mandating Making Tax Digital (MTD) for any new taxes or businesses in 2020.

Previously, HMRC said it would not extend the scheme to other taxes, such as income tax and corporation tax, until April 2020 at the earliest.

This date has now been pushed further back, with no extension planned for at least another two years.

The first stage in the programme, MTD for VAT, is still set to come into force from 1 April 2019.

This will require VAT-registered businesses with a taxable turnover above £85,000 to keep digital records and file returns using compatible software.

In a written statement published alongside Spring Statement 2019, Chancellor Philip Hammond said the Government would be focusing on "supporting businesses to transition" to the new rules.

He also confirmed a light-touch approach to penalties during the first year of implementation, with no filing or record-keeping penalties issued for businesses that are "doing their best to comply".

Speak to us about preparing for MTD.

The Association of Independent Professionals and the Self Employed