Following its initial announcement, Making Tax Digital has been in the limelight for quite some time now. This digital initiative has been rife with controversies with constant industry wrangles over timelines, costs to businesses and a shocking number of businesses being apparently oblivious of what exactly all of this involves.
Making Tax Digital was taken out from the Finance Bill in a direct retort to the calling of a general election. However, this does not necessarily mean that the project has gone away for good. It is likely to be reintroduced soon now that the election is over with over 400,000 businesses remaining to go online in April 2018 in accordance with the current timetable.
In order to get prepared for the resurgence of MTD, we are taking the time to shed light on what is known so far about the project, its current progress and if there is anything that businesses should be doing at the moment to get ready.
Reception of MTD
The overall reception of MTD has been really impressive. Individuals, agents and software providers have been supportive of the concept of MTD as it will work towards streamlining administration time for businesses and get better with being accurate while having complete access to tax records.
Impact of the Removal of MTD from the Finance Bill
The delay in the full-fledged launching of MTD is very much a blessing as it gives everyone the opportunity to revisit timelines, which have been under significant criticism for being too ambitious. It will also present another chance to reassess the proposals and provide more detail on the legislation which until now has been quite basic.
Software developers of popular packages like Sage, Quickbook and Xero will play a major role in delivering the appropriate software required to integrate the MTD project. These will also benefit from some extra time credit to get themselves thoroughly acquainted with HMRC’s application program interfaces or APIs.
The delay also means that time can be properly allotted to scrutinise and understand the project better and put the acquired insight to use and develop a better and more comprehensive set of legislation.
Moreover, an extended timescale would provide room for correction and appropriation of communication which, till now has been lacking. As plans take shape, there has been an increase in the level of confusion as to what MTD entails and its various implications on businesses.
What you should be doing now?
Irrespective of any potential delays to MTD, it is a certainty that it is going to return with much enthusiasm now that the election is over. If you own a business that is likely to be affected, specifically if you sit in the first tranche of those over the VAT threshold that must be complied with by April 2018, then there are some areas that you should probably get ahead with.
Develop your digital skills
If you lack digital experience, then you will benefit from expert accountants who will have a plethora of business and tax related advice that will help you plan your way forward. Lack of digital experience is a business threat that can be managed and it is best to start facing it now.
Northants Accounting can impart advice on the support and resources that are available to assist you with the process of transition. Get in touch with us today for more updates on MTD.
Tel: 01604 330129 Email: firstname.lastname@example.org