Making Tax Digital: Update on government plans due in January

Despite being perhaps the most significant change to the UK tax system in decades, Making Tax Digital (MTD) did not receive a single mention from the Chancellor in the Autumn Statement.

But the policy was referenced in the supporting documents, revealing that the government will publish its response to recent consultations in January.

The documents said: “In January 2017, the government will publish its response to the Making Tax Digital consultations and provisions to implement the previously announced changes.”

The government has come under heavy criticism from leading professionals for the lack of firm details which have been made available about how the policy will actually work in practice, particularly for limited companies.

At the moment, we know that businesses will have to report to HM Revenue & Customs (HMRC) on a quarterly basis, but will only have to make a single annual tax payment unless they opt to make quarterly repayments. We also know that businesses that have an annual income of less than £10,000 a year will be exempt from the changes.

Businesses will need to use what are described as ‘designated software packages’ to report to HMRC and this will not include Microsoft Excel. This means that those firms which are not using dedicated accounting software at the moment are likely to need to make the move over to such a package.

If your business does not currently use a dedicated accounting software package, it is likely to prove useful to make the move early.

As further details of the government’s plans for Making Tax Digital emerge, we will keep you informed of all the developments.

Link: Autumn Statement

Loading Quotes...

Latest News

10
Jun
Be prepared for changes to VAT penalties and VAT interest charges

Changes to charges and penalties applied to late submission of VAT returns will …
Read more…


10
Jun
Penalties for misuse of Coronavirus Job Retention Scheme

New legislation allows HM Revenue & Customs (HMRC) to recover Coronavirus …
Read more…


Don’t pay more tax
than you need to

Register for our newswire

Our regular Newswire mailings are designed to keep you up to date with the latest industry news and events.

Register here

Client Login
Complete our Client
Satisfaction Survey

Spring Statement 2022

Exactly two years since the first lockdown was announced, the eyes of the public were firmly...

Read full our summary