Making tax digital
Posted on February 2, 2017 by Wylie & Bisset
The Consultation is over and HMRC are progressing their MTD plans.
There are 6 responses to the 6 consultation topics as follows:
• Bringing business tax into the digital age.
• Making Tax Digital: Tax administration.
• Simplifying tax for unincorporated businesses.
• Making Tax Digital: Voluntary pay as you go.
• Making Tax Digital: Transforming the tax system through better use of information.
• April 2018 for Income Tax
• April 2019 for VAT
• April 2020 for Corporation Tax
Key things to look out for in the responses:
1. Delay in implementation for partnerships with turnover of more than £10m per annum to 2020.
2. Continued use of spreadsheets initially which can be linked to tied in software.
3. Those with earnings and pensioners exempt unless they have income of more than £10K per annum from another source e.g. property.
4. Opt in option for those self-employed individuals and landlords with turnover of less than £10K per annum.
5. Three line quarterly updates for those who report using three line accounts.
6. Quarterly updates to HMRC with which will generate estimate of tax on ongoing basis.
7. Voluntary pay as you go option without definite commitment to maintain.
8. Exemptions for cases where there is genuine non-access to MTD.
MTD is the latest challenge for clients and agents alike and we here at Wylie & Bisset will be monitoring progress as the project takes hold.
If you would like to discuss the implications of MTD with one of our advisors please contact email@example.com