News and events from TaxCalc
Articles containing the tag "MTD for ITSA"
In 2015, then Chancellor of the Exchequer, George Osborne, announced the biggest change to the UK tax system since the introduction of Self Assessment, as he declared “the death of the annual tax return” accompanied by “a revolutionary simplification of tax”. Neither has yet to be delivered but, if you look past the headlines and rhetoric, HMRC’s Making Tax Digital programme is less about making tax digital and more about making bookkeeping digital.
HM Revenue & Customs (HMRC) has confirmed that their new points-based penalty regime will come into effect from 1 January 2023 and will apply to both Making Tax Digital (MTD) for VAT as well as MTD for Income Tax Self Assessment (ITSA). Their stated aim is to make penalties simple, fair and effective but, as the arguably illustrious ageing rocker, Meat Loaf, might say, “Two Out of Three Ain’t Bad”.
The full MTD regulations have been made public for the first time today. Until now, we have only had an early draft of the regulations to work with and it is fair to say that there were some glaring holes in that draft document – particularly in relation to partnerships, basis periods and when taxpayers could enter or leave the MTD regime.
We have been waiting a long time for those draft regulations to be updated and our tax experts are now pouring over the contents to disseminate the fine detail.