So, what next?
For most of you, the delay is probably welcome and a good thing, but is it? Consider the effort and work already undertaken to get to the point you are now. Some of you will already be done and ready, others almost there and the remaining either oblivious to what MTD is or struggling to get a solution in place, maybe due to other complexities.
The goal may be to get yourself ready for MTD phase 2 but the underlying objective of MTD is about the digitalisation of your tax returns with no manual interference from your accounting system to the tax return. So take this announcement not as an opportunity to put down your tools and pick them up in February 2021 – only to go through the same stress as you are now – and instead take a moment to look at what you really have in place is fit for purpose. After all, maybe the expensive MTD tool that you have purchased isn’t really needed if the quality of the tax data is up to standard and this is the ideal opportunity to procure some different advice on what your real options are.
Once you are sure about your direction, keep moving forward. Sure, things right now with the coronavirus have made our daily working lives a little more complicated but, with the time extension, you can make sure the right solution is built and within a decent timeframe. So whilst you can slow down the development, do not stop it, do not allow those working on it to get reassigned and lose the valuable knowledge gained and keep moving forward to deliver for MTD phase 2 ahead of time.