HMRC OUTLINE MAKING TAX DIGITAL PLANS HMRC have provided consultation documents which detail their plans for the Making Tax Digital (MTD) initiative. There are six consultations for MTD plan, so far, including: • Operations of digital records and updates. There will possibly be compulsory digital record-keeping, with quarterly reports to HMRC and an End of Year declaration within nine months of the end of the period of account. • Simplification of tax for unincorporated businesses. • Extending cash basis accounting to unincorporated property businesses. • Voluntary pay as you go arrangements. This will mean taxpayers can pay what they want when they want (while adhering to standard payment on accounting rules). • Administration changes, including penalties for late submission of quarterly updates and End of Year declarations and also the late payment of tax. • Improvements in HMRC's use of information, including updating of PAYE codes more regularly and coding out of bank interest via PAYE.

HMRC Outline Making Tax Digital Plans - BWBbwbca.uk/.../09/HMRC-Outline-Making-Tax-Digital-Plans.pdfHMRC OUTLINE MAKING TAX DIGITAL PLANS HMRC have provided consultation documents

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HMRC OUTLINE MAKING TAX DIGITAL PLANS

HMRC have provided consultation documents which detail their plans for the Making Tax Digital (MTD) initiative.

There are six consultations for MTD plan, so far, including:

• Operations of digital records and updates. There will possibly be compulsory digital record-keeping, with quarterly reports to HMRC and an End of Year declaration within nine months of the end of the period of account.

• Simplification of tax for unincorporated businesses.

• Extending cash basis accounting to unincorporated property businesses.

• Voluntary pay as you go arrangements. This will mean taxpayers can pay what they want when they want (while adhering to standard payment on accounting rules).

• Administration changes, including penalties for late submission of quarterly updates and End of Year declarations and also the late payment of tax.

• Improvements in HMRC's use of information, including updating of PAYE codes more regularly and coding out of bank interest via PAYE.

Page 2: HMRC Outline Making Tax Digital Plans - BWBbwbca.uk/.../09/HMRC-Outline-Making-Tax-Digital-Plans.pdfHMRC OUTLINE MAKING TAX DIGITAL PLANS HMRC have provided consultation documents

“Commenting on the plans, Jane Ellison Financial Secretary to the Treasury said:

‘This new system will make the UK’s tax administration more efficient and straightforward and will offer businesses greater clarity when it comes to paying their tax bills.’

The changes to the tax system will be introduced gradually between 2018 and 2020. We will keep you informed of developments.

Internet link: GOV.UK MTD

If you require further advice or assistance, please contact BWB by email [email protected] , or call 01932 350117.

This summary is published for the information of clients. It provides only an overview of the main points, and no action should be taken without consulting the detailed legislation or seeking professional advice. Therefore, no responsibility for loss occasioned by any person acting or refraining from action as a result of the material contained in this summary can be accepted by the authors or the firm.

Brayne, Williams & Barnard Limited t/a BWB

First Floor, 5 Park Court, Pyrford Road, West Byfleet, Surrey KT14 6SD

Company no 09839023 Vat no 225 04086 23

tel 01932 350117 email [email protected] web www.bwbca.com