The government is amending its making tax digital reforms, including delaying the implementation timetable, giving companies more time to plan for the changes.
The plan had been for those affected by the reforms – some 1.6m companies, 2.4m self-employed and 900,000 residential landlords – to comply by April next year.
Businesses and landlords with turnover below the VAT threshold will be able to chose when to move to the new digital system, the government said.
