Update to Making tax digital for business – Introduction part 1 of 4
As part of Finance Bill 2020-12 the Financial Secretary to the Treasury, Jesse Norman has issued a written statement which has set out many of the areas in which HMRC plan to modernise the tax administration system in the UK.
A critical part of this plan is the implementation of the Making Tax Digital (MTD) flagship scheme that has been ongoing in one form or another since 2015.
The most recent frustration to the roll out of this scheme has been the recent Coronavirus pandemic and the government responses which have required significant financial and technical input by HMRC.
The recent statement reiterates the fact that HMRC are seeking to restart this program to try and close the £8.5bn gap between actual and anticipated tax receipts due to avoidable mistakes and errors in tax returns.
In an upcoming series of articles we will look into the impact of the recent announcement on Making Tax Digital for VAT, Income tax and Corporation tax.