The Finance Bill will now be published after the summer recess, and the timetable for the implementation of MTD has been delayed.
With only six days of Parliamentary time left before summer recess at the time of the announcement, it is perhaps unsurprising that the Government has chosen to delay the Finance Bill, which had been expected to appear soon. The Bill will now be introduced as soon as possible after the summer recess, and will contain the provisions that were withdrawn from the Bill ahead of the general election. The Government has also confirmed that all policies originally announced to start from April 2017 will be effective from that date, and, due to a number of technical changes made to the legislation as it appeared in March, the Government has now published updated draft legislation on certain measures to give greater certainty about the content of the Bill to be published in the autumn.
The measures on which updated draft legislation has been published are:
As well as delaying the Finance Bill, the Government will also be delaying the implementation of Making Tax Digital (MTD). The new timetable will mean that it will only be from 2019 that businesses with a turnover over the VAT threshold (currently £85,000) will need to keep digital records, and then only for VAT purposes. Digital record keeping and quarterly reporting to HMRC will not be required for other taxes until at least 2020. However, MTD will be available on a voluntary basis for smaller businesses and for other taxes, to allow businesses more choice over when to go digital.
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