HMRC planned to force even very small businesses and sole traders to start quarterly reporting from April 2018. However, changes at the Treasury after the election seem to have resulted in a more sensible approach to the whole Making Tax Digital debacle.
All those below the VAT threshold (currently £85,000) will now be exempt from requirements to quarterly report until the government can reassess the plans.
Vociferous opposition to the rollout timetable from MPs, business and the influential Treasury Committee has resulted in the climbdown.
There will be a one-year delay for the wider rollout, with an April 2019 start date for businesses with a turnover above the VAT threshold to start keeping digital records but only for VAT purposes.
Full-blown quarterly reporting will not start before ‘at least 2020’ according to the ministerial statement.