For those businesses battling with Making Tax Digital ( MTD ) for VAT, Brexit, extension of IR35 rules, business rates charges, amongst other things, and trying to keep their businesses operating efficiently, there is a little bit of good news.
It has been confirmed that there will be no mandation of MTD for any new taxes or businesses until the earliest of 2021. On the back of MTD for VAT, it was suggested that other taxes could follow the MTD route from as soon as 2020. So, businesses can at least look forward to the next 2 years before they may possibly be forced into MTD for other taxes.
Chancellor, Philip Hammond, has however confirmed that the Government is still committed to the introduction of MTD for VAT purposes from 1st April 2019.
It is likely that HMRC have decided they want to take stock of the VAT position under MTD before they roll out MTD further to income tax and corporation tax. It remains our view here though that MTD for these other taxes will come into force within the next 2-5 years. We will keep clients updated of any new developments.