The Treasury’s original plan, part of its Making Tax Digital programme, would have forced businesses to start online quarterly reporting from April 2018.
The government last week decided that companies below the VAT threshold (currently £85,000 taxable turnover) will no longer be forced to move their tax reporting online.
Only businesses with a turnover above the VAT threshold will have to keep digital records and only for VAT purposes and from 2019.
For other taxes, businesses will not be asked to keep digital records, or to update HMRC quarterly until after 2020.
Mel Stride, financial secretary to the Treasury and Paymaster General, said: “We have listened very carefully to concerns and are making changes so that we can bring the tax system into the digital age in a way that is right for all businesses.”
Sensible decision
Marco Forgione, chief executive of the British Antique Dealers’ Association (BADA), said: “I welcome the government’s sensible decision to delay any move to introduce the mandatory requirement for all businesses to keep digital accounts.
“It is particularly pleasing that the government has heeded our advice, and the advice offered by most other business groups, and indeed the Treasury Select Committee, to halt the proposed introduction of quarterly reporting.”
