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Making Tax Digital Hub

The primary online resource for accountants seeking to understand HMRC’s new initiative and turn transition into opportunity

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Time to embrace the
digital change

With HMRC committed to revolutionising the UK’s tax administration and reporting processes, it’s imperative that accountants and their clients begin their preparations now.

Our Making Tax Digital Hub features an array of tools, guides, videos, webinars and upcoming events created to help you on your digital journey, ensuring a smooth and profitable transition.


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Making Tax Digital is here

With the first mandate being implemented in April 2018, accountants should be seeking clarity on how MTD compliance will be delivered by their software providers.

MTD has been integrated into the Spring 2017 release of IRIS? practice-based compliance solutions, to keep accountants ahead of the latest legislative changes.

A number of functional enhancements are set to deliver productivity and efficiency gains across the complete suite.
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Start your Making Tax Digital (MTD) journey today. It’s time to go digital.

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FAQs

What is Making Tax Digital?

Making Tax Digital (MTD) is a government (HMRC) objective to transform the tax system and end the tax return by 2020.

The aim of the initiative is to make tax administration more effective, more efficient and easier for taxpayers, through the implementation of a fully digital tax system.

By 2020, most businesses, including companies, partnerships and individual taxpayers who are self-employed and those letting out property, will be required to keep track of their tax affairs digitally and update HMRC every quarter.

How will an individual’s quarterly submission work for clients running their own companies and getting a salary and/or dividend calculated at the company year-end?

The process for companies has not yet been decided as companies do not fall into MTD until April 2020. HMRC will carry out a consultation process for companies, the same as they have done for other trades and this will determine how these situations will be handled.

From the individuals perspective, it is only their trade and land & property income that needs to be filed quarterly, all other income can be submitted after the end of the tax year.

Will agents have to be approved for MTD and what is the subscription process?

The MTD process for agents is still being refined by HMRC. What we know at the moment is that agents will be required to register for Agents Services to allow them to act on behalf of their clients under MTD. To register for this they will need to request a new “clean” set of user credentials from the government gateway and carry out a mapping process in order for any existing 64-8 relationships to be carried over to these new set of credentials.

We will be making guidance available as soon as we have the full end to end process from HMRC.

Will completion of a Self-Assessment Tax Return continue for clients not covered by MTD quarterly filing , for example, for high wealth individuals with investment income and capital gains ?

Yes, that is correct, self-assessment returns will continue for those that MTD does not apply to. MTD quarterly submissions only apply to trading and Land & Property income. HMRC’s timeline shows that this will be expanded to cover VAT reporting and Corporations over the next 3 years, but they are yet to consult on MTD for individuals.

What are the timescales for introducing MTD?

April 2017 – public beta opens

April 2018 – businesses with turnover above VAT threshold £85k

April 2019 – expanded to cover VAT Reporting and self-employed small businesses with turnover above £10k

April 2020 – corporations and partnerships with turnover above £10m