HMRC introduces MTD “pilot scheme”

HM Revenue & Customs (HMRC) has said that “hundreds of thousands” of taxpayers will have access to a “year-long” Making Tax Digital (MTD) pilot scheme from April 2017 until April 2018.

The news comes not long after the Treasury Committee criticised HM Revenue & Customs (HMRC) and urged it to review its proposed timetable for MTD ahead of releasing its official response to six consultations opened in August 2016.

As it stands, quarterly digital reporting will be phased in for landlords and the self-employed in April 2018 with small businesses soon to follow.

By 2020, HMRC says that Making Tax Digital will have effectively taken the place of the traditional tax return as we know it.

Concerns raised by the Treasury Committee that the project will prove problematic unless it is pushed back “until at least 2019/20” are currently under consideration, according to reports.

However, the Revenue has confirmed that a “year-long” pilot scheme is now scheduled to take effect in April for the digital reporting of any income received from letting property in the first six months of 2017.

An HMRC spokesperson said: “Making Tax Digital will modernise the tax system, helping them get their tax bills right with the least administrative burden.

“We welcome the Committee’s support for the digitisation of the tax system, and will consider its recommendations carefully”.

For more information on MD Consulting’s tax services, please contact us.

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