On 13 July 2017 HMRC announced that the government has listened to concerns from various bodies and respondents of their consultations and have agreed to slow down the pace at which businesses are moved to the new Making Tax Digital regime.
Originally, it was proposed that sole traders, partnerships and those with rental income above the VAT threshold would have to begin quarterly reporting of accounting data from April 2018. This has now been postponed until at least April 2020.
Once included, businesses will be expected to report figures quarterly to HMRC, with a probable year end finalisation still. It is likely that basic bookkeeping might be taken up by the proprietors themselves with accountants moving more towards assistance and review; though it seems highly likely that accountants will be expected to do more, and charge more, for the services that will be required.
It is likely that the reports will be of income and expenses without tax, or other accounting, adjustments.
Probably businesses will have one month after the quarter end to file their report. It is prob businesses will find their deadlines for submission might tighter than they are at present.
Bookkeeping on a ‘cash’ basis is being brought in for both businesses and rental businesses.
It is also clear that HMRC intends to bring in more and more frequent reporting of an increasing number of areas over the years to follow.