HMRC publishes Making Tax Digital consultation response

HMRC has published its response to the feedback it received on its six Making Tax Digital (MTD) consultations.

01 Feb 2017

The initiative is intended to create a 'transparent and accessible tax system fit for the digital age', and is due to be implemented between 2018 and 2020.

HMRC sought the opinions of businesses, the self-employed and landlords, who are amongst those likely to be the most affected.

The government published a raft of proposals, taking into account the views of consultation respondents. These include:

  • providing free software to those businesses with the 'most straightforward' tax affairs
  • allowing businesses to use spreadsheets for their record-keeping, which can be linked to the software in order to send updates to HMRC
  • excluding charities from the requirement to keep digital records
  • deferring MTD until 2020 for partnerships with turnover exceeding £10 million
  • giving taxpayers at least 12 months to familiarise themselves with the changes before any late submission penalties are applied.

HMRC also stated that it will introduce changes gradually, and that any such changes will be thoroughly piloted with businesses before they are fully implemented.

The government hopes that pilot schemes will help to ensure that the MTD software is 'user-friendly', and will give businesses and individuals time to prepare and adapt.

Jim Harra, Director General of Customer Strategy and Tax Design, commented: 'MTD will help businesses to get their tax right first time; it will help reduce the likelihood of errors, lower the chance of unwelcome compliance checks and give them greater certainty that they are getting things right.'

The government’s response to the consultation feedback can be viewed here.

Quick Links

Home | Contact us | Accessibility | Disclaimer | Help | Site map |

© 2018 Blue Spire Limited. All rights reserved.

We use cookies on this website, you can find more information about cookies here.

Contact Chichester Office

Tel: +44 (0)1243 781234
Fax: +44 (0)1243 791770
Email: chichester@bluespiregroup.com


Contact Brighton Office

Tel: +44 (0)1273 739533
Fax: +44 (0)1273 732844
Email: brighton@bluespiregroup.com

Chichester Address
Cawley Priory, South Pallant, Chichester, West Sussex PO19 1SY

Brighton Address
5th Floor Intergen House, 65-67 Western Road, Hove, East Sussex BN3 2JQ

Blue Spire Limited is Registered to carry out audit work in the UK and Ireland and regulated for a range of investment business activities by the Institute of Chartered Accountants in England and Wales C004152645. Professional indemnity insurance is provided by Royal & Sun Alliance Insurance Plc 9th Floor, One Plantation Place, 30 Fenchurch Street, London, EC3M 3BD and its territorial coverage is worldwide (excluding United States/Canada).
Blue Spire Financial Planning Limited is authorised and regulated by the Financial Conduct Authority. FSA register https://www.fca.org.uk/register reference 566257. This guidance and/or advice contained within this website is subject to the UK regulatory regime, and is therefore targeted at customers based in the UK