HMRC announce delay to digital tax plans
The HMRC’s plans to make tax digital included the milestone that, by 2020 most businesses, self-employed people and landlords will be required to keep track of their tax affairs digitally and update the HMRC at least once a quarter via their digital tax account. This was to be phased in with some business, individuals and landlords being affected as early as April 2018.
HMRC has accepted that all types and size of business need more time to prepare for the introduction of digital tax. As a result of the concerns shown by a range of businesses in keeping online records, HMRC’s digital tax plans are being delayed until 2019.
In addition, quarterly return exemptions are being extended to all unincorporated businesses and landlords with annual incomes below £10,000. Until the announcement, the exemption only applied to individuals who received a second income of less than £10,000 from self employment or property.
The Treasury was pleased to announce that by extending the exemption, one million more landlords and small businesses would be exempt.