We have a staging of MTD for VAT taking place in April 2019. This applies only to VAT registered traders with a turnover in excess of the compulsory registration liming of £85,000. The staging for unincorporated traders and landlords is likely to be next, but the government have assured us that this will not take place before 2020.
As for corporation tax, we have a hiatus with no indication of staging dates for this.
Perhaps you’d say nothing much to report of future implementation. But what impact will it have on you if the VAT registration is lowered?
The Chancellor of the Exchequer considered this very seriously at his last budget. His reason is the worry that a high registration limit for VAT is placing an unnatural cap on trade A business trading with a turnover just below the registration limit may restrict its trade in such a way that they remain below the VAT registration limit. Rumour has it that he was considering lowering the registration limit to £30,000. He was persuaded not to adopt this but there is now a consultation period to examine this in more detail.
My prediction is that the VAT limit will be reduced and that the end point will be brought in line with the MTD Income Tax limited, which was proposed at £10,000 PA. I would expect this to be reduced in stages so that the end limit coincides with the staging for income tax, perhaps by 2021.
So whilst only talking of traders with a turnover of £85,000 or more at the moment, traders with smaller levels of turnover should be ready to be brought within the MTD net during the course of the next two to three years.
For further information on MTD or cloud accounting, please do not hesitate to contact me.
You can also watch my video update on Furture Implementation via our Youtube Channel.
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