No more delay on MTD, VAT-contractors warned

The so-called soft landing’ looks like the last respite on digital tax accounts that contractors will get, as the small business minister has reportedly said there will be no more delay.

Back in May, the rollout of Making Tax Digital – the full name for the online tax accounts system -- was postponed for individuals, mainly due to Brexit work at the tax office.

The pledge of the ‘soft landing’ followed, as did HMRC guidance for people and firms facing the April 1st 2019 go-live date of what will be MTD’s first stage -- VAT record-filing.

And although small businesses’ advisers have since said that many freelancers and other tiny traders are still not clued up enough about MTD, the go-live date is apparently not moving.

In fact, Kelly Tolhurst MP warned taxpayers affected by the compulsory e-record keeping of VAT from this coming April that they should not expect a further hiatus, the Times reported.

The minister for small business also said that those affected should prepare for the online requirement, despite the risk that it could coincide with fallout from a ‘no-deal’ Brexit.

“I’ve heard the concerns”, she reportedly added. “We’re making sure the communication is there so small businesses know exactly what they’ve got to do.”

Interestingly though, the former marine-services business owner was said to have then admitted that the self-employed were “some of the hardest people in the economy to reach.”

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Written by Simon Moore

Simon writes impartial news and engaging features for the contractor industry, covering, IR35, the loan charge and general tax and legislation.
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