MTD on hold until 2020

The announcement on 13 July 2017 that the rollout of MTD for business was to be pushed back to 2020 came as a big surprise to everyone, including the software development support team at HMRC.

That statement says: “The Government will not widen the scope of MTD beyond VAT before the system has been shown to work well, and not before April 2020 at the earliest. This will ensure that there is time to test the system fully and for digital record keeping to become more widespread.”

HMRC has acknowledged in calls to software developers that the MTD project needs to be reconfigured into something that businesses want to use, as the emphasis will now be on encouraging people to opt into MTD, rather than compelling people to use the system with the threat of penalties. This indicates that a redesign of the whole structure of MTD will be required.

We will keep you updated!

 

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