Having announced that quarterly returns would be required for Landlord and sole traders for their income tax, beginning April 2018, HMRC have announced both a delay to April 2019 and a complete change of target, beginning their Digital Tax changes with VAT returns not income tax. Income tax and corporation tax will follow later.
Most businesses submit their VAT returns online, and c90% of those submit it using HMRC’s online system, so one might wonder what there is to worry about?
Unfortunately Making Tax digital is a completely new IT platform and the old online systems will no longer be available. The assumption HMRC are making is that businesses will submit returns using commercial software.
So if you currently submit your VAT return using HMRC software you need to be aware changes are afoot. We could do with a little more clarity from HMRC as to MTD requirements for all taxes so software providers and their client can ensure compliance.
In the meantime – Landlords can sleep easy for another year, and we await further information from HMRC….