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Under the original proposal most businesses, self employed people and landlords were going to be required to use software or apps to keep their business records digitally and to report this information quarterly to H M Revenue & Customs. This was intended to apply from April 2018 for Income Tax and National Insurance, VAT from April 2019 and Corporate Tax from April 2020.
An HMRC Treasury statement issued on 13 July 2017 confirmed that the requirements for digital quarterly reporting were being stripped back to cover only VAT in a revised roadmap for MTD.
The revised timetable will be as follows:
Given that VAT is already quarterly for most businesses and most submissions are already made online, what needs to change for MTD? They key issue under MTD is that submissions need to be made directly from the accounting software. The challenge is therefore going to be that VAT records may not be entirely integrated within the business accounting software with a majority of businesses currently keying-in date for online VAT submissions.
The MTD legislation will be included in the Finance Bill (No. 2) due to be introduced in the autumn when we will have more detail about these revised plans. In the meanwhile, if you would like to discuss how the move to digital reporting will affect your business, please contact Kirsty MacDonald at email@example.com
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Firstly we hope that you -our clients, our contacts and our colleagues -are keeping safe and well in these difficult and challenging times. We are doing our very best to provide as normal service as possible and we can be contacted through all of the usual channels.
Our three offices in Kelso, Melrose and Berwick are all being ‘manned’ so you can call us or arrange for records to be dropped off or collected. Clearly there are social distancing and COVID safety restrictions in place so please contact us in advance to make suitable arrangements. All post is being dealt with as normal.
The majority of partners and staff are currently home-working and again are fully contactable. Whilst face to face meetings are not appropriate at this time we are utilising other communications such as video conferencing, in addition to telephone and email.
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