HMRC's Making Tax Digital Timeline
HMRC plans to become one of the most digitally-advanced tax administrations in the world. This means that big changes are needed to our current tax system, affecting both how data is collected and how it is stored by HMRC.
HMRC has taken a major step forward in achieving this with the launch of the Making Tax Digital initiative.
July 2020 saw the treasury provide a written statement declaring HMRC's 10 year plan signalling their intent to make tax:
- More effective
- More efficient
- Easier for taxpayers
In July 2022, HMRC opened a consultation on the tertiary legislation for MTD for ITSA (Income Tax Self Assessment).
In December 2022 it was announced in a Written Ministerial Statement that the roll out of MTD for ITSA would be delayed by a further two years.
HMRC’s MTD journey so far:
The key requirement for all businesses falling within the MTD regime, whether that is for VAT, Income Tax Self Assessment or Corporation Tax, will be to keep records digitally and up to date on a quarterly basis.
For businesses whose records are currently manual, or completed annually, this will represent the biggest change to their bookkeeping processes and it may be advisable for them to begin that digital transformation journey as soon as possible.
Future-proofing with TaxCalc
We are actively working on solutions, as recognised by HMRC, to make the transition into MTD for ITSA as seamless as possible.
Business Filer is our new MTD for ITSA bridging solution and upon release will allow our customers to submit quarterly submissions to HMRC. Those familiar with VAT Filer, our MTD for VAT bridging solution, will recognise the simplicity with which those submissions can be made.
For your annual tax filing obligations we will update Tax Return Production to allow you to meet your MTD for ITSA requirements.
We are also continuing to explore collaborations with other software suppliers to ensure a seamless end to end process across multiple systems.