United Kingdom Announces Change in Timetable for “Making Tax Digital” Initiative for Businesses

July 26, 2017 Charles Riordan

On July 13, 2017, the parliament of the United Kingdom, along with Her Majesty’s Revenue and Customs (HMRC), announced that the roll-out of the ‘Making Tax Digital for Businesses’ will be delayed until April of 2019. This initiative, first decided upon in December of 2015, is an effort by the government of the U.K., to digitize all tax records and filing obligations that U.K. registered businesses have for value added tax purposes. This move to digital technology is seen by the government as a way to reduce the amount of avoidable tax errors that have been made in recent tax filing years.

As previously reported, HMRC’s initial timetable for implementing “Making Tax Digital,” with a start date of April 2018, was criticized in both houses of Parliament. The new roll-out plan will require businesses with a turnover above the VAT threshold (currently £85,000) to keep digital records for VAT purposes only. This requirement will be imposed as of April of 2019 for businesses above the VAT threshold, and will be voluntary for smaller businesses.

The post United Kingdom Announces Change in Timetable for “Making Tax Digital” Initiative for Businesses appeared first on Sovos.

About the Author

Charles Riordan is a member of the Tax Research team at Sovos Compliance specializing in international taxation, with a focus on Value Added Tax systems in the European Union. Charles received his J.D. from Boston College Law School in 2013 and is an active member of the Massachusetts Bar.

More Content by Charles Riordan
Previous Article
Washington State Taxes Bottled Water Once Again

Effective August 1, 2017, the State of Washington will extend its retail sales tax to sales of bottled wate...

Next Article
Australia Amends GST Act to Include Another Category of Drugs and Medicine Preparations that are now GST-Free

The Australian Parliament recently amended the GST Act of 1999, to add an additional category of drugs and ...