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Consultation on income tax and VAT regulations under way.
HMRC is consulting on proposed legislation for income tax and VAT on the Making Tax Digital (MTD) requirements for businesses. The consultation covers two sets of income tax regulations and an overview of the VAT legislation.
Making Tax Digital will be mandatory for VAT purposes from April 2019. From then businesses with a turnover above the VAT threshold (currently £85 000) will have to:
- keep their records digitally – for VAT purposes only; and
- provide their VAT return information to HMRC through MTD-compatible software.
Other businesses will be able to adopt MTD voluntarily for VAT and income tax if they wish.
The VAT legislation overview covers the legislation in Finance (No 2) Bill 2017. It also outlines the main requirements to be set out in VAT regulations that will be introduced in April 2018.
The Draft Income Tax (Digital Requirement) Regulations set...
