It was all the way back in 2015 that MTD was announced as the end of the tax return. 8 years later income tax remains untouched by MTD. It quickly morphed into Making Tax Digital for VAT. This took effect from April 2019. After more delays April 2024 was fixed as a date by which most sole-traders would need to begin reporting quarterly and meeting the specific record keeping requirements.

Where are we now? If you were eagerly following the news on this topic then December 19, 2022, was a big day for you. It was announced the requirements would be bumped back to 2026. No doubt most were happy to hear this. However, now that it's over 2 years away who is actually planning for it?

 Before the announcement in December 2022 many were concerned about implementing the record keeping requirements. Partly due to uncertainty over the software required but for others it would require a massive change in record keeping. Going from what could be described as traditional methods to digital record keeping.  

 It's important to remember these issues haven't gone away, they have just been kicked down the road. What can individuals and businesses do now? It's worth taking a little time now to review how you are keeping business records and if some adjustments to the process would leave you in a better position when MTD is finally brought in.

If you would like to discuss how WB Accountant can assist you with record keeping and tax compliance please give us a call.