Deloitte comments on new timetable for Making Tax Digital

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Commenting on the Governments decision recently to extend the timetable for ‘Making Tax Digital’  Bill Dodwell, head of tax policy at Deloitte, said: “We welcome the government’s decision to defer these major changes for the self-employed and landlords. This will give time for HMRC and accounting software providers to launch and test fully new systems – including those allowing agents to transact on behalf of their clients.

“Ultimately digital filing will be the default method, potentially bringing benefits to taxpayers and to HMRC. However changing the way in which 3.5 million taxpayers keep records and provide data to HMRC is such a major change that gradual change will be more effective.

Currently almost all VAT-registered businesses file their VAT returns online, either through software or via the HMRC portal. The government has decided that 1.1 million businesses with sales over the VAT threshold (£85,000) will need to file through software from April 2019. It is not known how many businesses in this category will need to acquire new or updated software.”