HMRC forging ahead with Making Tax Digital

HM Revenue & Customs (HMRC) has sought to allay fears of delays to the implementation of Making Tax Digital.

Theresa Middleton, Director for Making Tax Digital (MTD), has written to software developers, insisting the “delivery” of the UK’s new digital tax system for self-assessment and VAT “continues at pace and as planned”.

There had been concerns in recent weeks that the UK’s impending exit from the European Union (EU) would delay the service from taking effect as planned. However, Ms Middleton’s latest email would suggest MTD is still a front and centre priority for HMRC.

Middleton confirmed in her email to developers that internal preparations for MTD “are progressing well” and that pilots are already “underway for both VAT and Income Tax”.

“The live pilot of MTD for VAT started on 10 April 2018,” said Middleton.

“This builds on the small-scale technical testing started at the end of last year.

“We are now inviting a small number of businesses who meet the initial eligibility criteria to join, with access being gradually expanded on an iterative basis, as new functionality is added and demonstrated to be working.”

HMRC is continuing its voluntary Income Tax pilot for MTD and has recently opened a pilot to sole traders. Middleton confirmed the tax authority will seek to “expand the scope of this pilot in the coming months”.

No mandatory Making Tax Digital measures are planned for the UK tax system until April 2019, when small businesses and individuals with a turnover above the VAT threshold of £85,000 will be required to keep digital records for VAT purposes. However, the Government has reiterated no additional tax records will be digitised under MTD until 2020 at the earliest.

“I hope this reassures you of our continued commitment to Making Tax Digital for Business,” concluded Middleton.

Making Tax Digital is designed to digitise the British tax system, bringing it into the 21st century. The new technology will streamline the process of maintaining individual and business tax records with HMRC.

Your local TaxAssist Accountant can help

If you’re concerned about meeting your Making Tax Digital obligations, why not arrange a free consultation with your nearest TaxAssist Accountant? As small business owners ourselves, we fully understand what is required to manage your business records digitally.

Our partnership with Intuit QuickBooks takes the guesswork out of managing your business accounts and allows you to focus on doing what you do best – growing your business.

Start preparing the right way for Making Tax Digital with your local TaxAssist Accountant by calling 01642 646365 or emailing our team with your concerns using our online enquiry form.

Image by HMRC Press Office via MyNewsDesk.

Last updated: 9th May 2018