The plan to make the UK tax system more effective, efficient and easier is well under way with an update on the Making Tax Digital scheduled implementation date of 2020 expected in January 2017.
What benefits should Making Tax Digital bring?
- Make tax reporting less onerous
- Give taxpayers a single picture of all tax liabilities and entitlements in one place.
- Give businesses and landlords greater clarity on tax falling due
What will this mean for you?
- A potential change to the rhythms and methods of tax reporting
- All businesses and landlords will be required to use online accounting software to report transaction data to HMRC, probably quarterly which may have cost implications.
- HMRC will pre-populate tax accounts with information they already hold – less uploading of data will be required.
When can we expect to hear more?
The outcome of the results from the recent consultations is scheduled for January 2017.
Andrew Tyrie, Chairman of the Treasury committee has suggested there will not be enough time to implement Making Tax Digital by April 2018. Tyrie has stated “Getting this right matters a lot, particularly to the small businesses who could be hit hard by a mistake. […] the evidence we heard suggests that the introduction of MTD should not be rushed. Every effort should be made fully to pilot its introduction, perhaps over several years.”
All of the Making Tax Digital changes are intended to provide an improved insight into your tax affairs. When used in conjunction with the pro-active advice provided by Hunter Gee Holroyd, a simpler and more real-time view of your tax affairs will be available for planning purposes.
Source: CCH, GOV.uk