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Making tax digital (MTD) is the government’s plan to move to a fully digital tax system. HMRC’s wants to become one of the most digitally advanced administrations in the world. Businesses with a turnover above the VAT threshold are generally mandated to use MTD in relation to their VAT obligations from April 2019. Although there is a deferral period of six months for certain prescribed businesses such as those that submit annual returns. At Spring Statement 2019 the government announced that it will not be mandating MTD for any new taxes or businesses in 2020.

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