LITRG urges HMRC to thoroughly test MTD for Income Tax before its introduction

The Low Incomes Tax Reform Group (LITRG) has urged HMRC to thoroughly test Making Tax Digital for Income Tax (MTD for Income Tax) before rolling it out to taxpayers and landlords.

30 Jul 2020

The Low Incomes Tax Reform Group (LITRG) has urged HMRC to thoroughly test Making Tax Digital for Income Tax (MTD for Income Tax) before rolling it out to taxpayers and landlords.

HMRC recently announced that, from April 2022, Making Tax Digital for VAT (MTD for VAT) will be extended to all VAT-registered businesses with turnover below the VAT threshold of £85,000.

Additionally, from April 2023, the self-employed and landlords with turnover above £10,000 per year will be required to keep digital records and submit income tax updates every three months. The updates will replace the filing of the annual self-assessment tax return.

The LITRG is urging HMRC to 'make effective use of the next three years' and run full pilots in order to help support taxpayers with the transition to the new digital system.

HMRC is currently running a small MTD for Income Tax pilot with self-employed individuals and landlords. It is seeking to scale up the pilot from April 2021.

Commenting on the matter, Victoria Todd, Head of the LITRG, said: 'We recognise the many benefits that a primarily digital system will bring for individuals and business as well as for HMRC.

'However, it is important that those who require assistance to transact digitally and individuals who are digitally excluded continue to have their needs met.'

Quick Links

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

© 2020 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