There’s some good news for small businesses worried about the switchover to compulsory digital accounting to keep their business records, and to update HMRC on a quarterly basis. The Making Tax Digital (MTD) will not now require businesses to do so until April 2019, that’s an extension of one year and it will then only apply to those businesses with a turnover above the VAT threshold. Businesses will also be able opt in for other taxes, benefitting from a streamlined, digital experience.
The Treasury has announced that it will not widen the scope of MTD to remaining businesses before the system has been properly tested and not before April 2020 at the earliest. I have been campaigning on behalf of small businesses for this change and I know it will be a welcome relief to many who are worried about the increased administrative burden, the cost and the lack of training to complete financial returns digitally and quarterly.
As someone who has benefitted from the opportunity to start and build my own businesses, I will always be a strong champion for small business and I will do everything I can to make sure we maintain the best possible economic environment for this vital sector.