An updated statement of impacts of Making Tax Digital is due to be published on 1 December 2017, along with the wider post-Budget draft legislation and consultation documents on new measures, including the royalties tax and changes to capital gains tax (CGT).

There is still very limited information available on the mechanics of how Making Tax Digital for VAT will work when it comes into effect from April 2019 for VAT registered businesses only. So far testing has only been conducted through software companies and their clients, so a substantially larger pilot would need to reach a far wider small business and sole trader community.

A detailed consultation on Making Tax Digital for VAT compliance issues is expected in early 2018, likely before the March 2018 Spring Statement is delivered by the Chancellor.  

The wider rollout of Making Tax Digital for quarterly reporting for non-VAT tax liabilities will not start until April 2020 at the earliest.

The government has confirmed that:

•             Making Tax Digital for VAT only will be introduced from April 2019;

•             only businesses with a turnover above the VAT threshold (£85,000) will be mandated to use Making Tax Digital for VAT from April 2019, and then only to meet their VAT obligations; and

•             businesses with a turnover below the VAT threshold will not be required to use Making Tax Digital for VAT from April 2019. 

Keep up to date with Making Tax Digital developments