HMRC launches Making Tax Digital consultation
Philip McNeill reports on the launch of HMRC’s Making Tax Digital consultation and details how CAs can share their views.
The long-awaited HMRC consultation on Making Tax Digital have been released. The proposals include digital record keeping and quarterly reporting for business.
There are six consultations plus an overview. These cover simplification, extension to cash basis, voluntary pay-as-you-go for tax, as well as reporting and record keeping proposals and penalties.
A new reporting framework
End of year statements would be due within nine months of the end of the reporting period. These would in essence replace the current self assessment annual returns.
Quarterly updates would be required from most businesses, though in a welcome change there would be exemptions for the digitally excluded and for those with turnover below £10,000.
Making better use of information
HMRC aims to make more use of information it already holds, such as that from employers, pension providers and banks. For PAYE taxpayers, there will be the facility to provide updates on non-PAYE income. This will enable more real time reporting and collection.
Have your say
The consultation period runs to 7 November 2016, but it will be helpful to have your views as soon as possible. Please send comments to email@example.com. Links to the consultations are below.
- Making Tax Digital for Business - An overview for small businesses, the self-employed and smaller landlords
Link to all consultation papers:
Links to individual consultation papers:
- Making Tax Digital: Voluntary pay as you go
- Business Income Tax: Simplifying tax for unincorporated businesses
- Business Income Tax: Simplified cash basis for unincorporated property businesses
- Making Tax Digital: Tax administration
- Making Tax Digital: Bringing business tax into the digital age
- Making Tax Digital: Transforming the tax system through the better use of information