The House of Lords plea to defer MTD for VAT on 1 April has been rejected.
Many small businesses have been hoping that HMRC would postpone or modify MTD for VAT; alas it is not to be.
In 2015, HMRC set out their vision to modernise the tax system. This remains unchanged and MTD should make us more productive and efficient; but do HMRC understand the practicalities? HMRC are writing to all businesses to ensure they are aware of the MTD changes, offering support and are working with software providers but all this takes time to implement and, for VAT registered businesses with a turnover over £85,000, 1 April is just over a month away.
Rest assured, for other taxes and those businesses with a turnover below the £85,000 VAT threshold, MTD will not come into play until the system is shown to be working, and not until 2020 at the earliest.
The clock is ticking; call Chloe or Sarah H on 01223 810100 for more information.