On the back of evidence given by the Association of Convenience Stores, the Government has decided to defer its Making Tax Digital drive.
Created in order to reduce the losses made from inaccurate tax returns, the digital push will require businesses to submit quarterly updates of their tax information via software, as well as an end of year summary.
The ACS has fought the independent retailer’s corner, asking for a delay of the reforms to avoid short-term pressure on SMEs. Most businesses were previously expected to comply from the start of 2018.
Now outlined by the Government, businesses with an annual turnover that falls below the VAT registration threshold will benefit from an additional year before they are required to keep digital records and provide the quarterly feed. Should businesses be ready to do so they are however invited to supply these from April.
If your business comes in above the VAT threshold you will be required to make the submissions from April of 2018. The exemption threshold sits at £10,000.
More information can be found at GOV.UK.