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An at a glance guide.

When does Making Tax Digital (MTD) apply? What does Making Tax Digital really mean? How will it affect you? Does MTD mean quarterly reporting? Is my business exempted from Making Tax Digital?

What's New?

July 2020: New Timeline announced for Making Tax Digital for Business

March 2020

March 2019

February 2019

November 2018

October 2018

July 2018

HMRC published VAT Notice 700/22: Making Tax Digital for VAT

Draft Finance Bill 2019 contained proposals for three new tax penalty systems which were dropped following budget 2018. HMRC have said that they will be included in a future finance bill.

The penalty proposals are:

HMRC also published policy papers and this follows consultations: MTD: Sanctions for late submission and payment and consultation, Making Tax Digital: Interest harmonisation and sanctions for late payment

MTD background

Overview: what is MTD?

Links

MTD: Toolkit for Accountants & Advisers 
Summarising the new legislation as it affects you and your clients as it unfolds

MTD: Survival guide for the self-employed
Client guide to MTD

MTD: Index & timeline
The current MTD timetable links to consultations, responses, proposed legislation and our guides and summaries. Warning: Update in progress!

MTD: Let's simplify further
Comment: our practical and cost-effective suggestions as to how HMRC can improve its quarterly reporting requirement.

MTD: Alternative truths and myths
HMRC published a 'myth-buster' on MTD in 2016. It has turned out to be about as reliable as a 'Trump 4 am tweet'. This table busts the myths. The truth is out there.

MTD: HMRC responds
Responses to the six consultations. Quarterly reporting, simplified three line reporting, re-think on penalties, cash accounting for landlords, some simplification for other businesses. Smartphone no longer mandatory.

Lords call for evidence
The House of Lords has made a call for evidence as to the benefits of MTD ahead of HMRC's publication of draft clauses in FB2017 on MTD. They are focusing on administration, clarification and simplification.

Making Tax Digital: Changes needed
The Treasury Committee is recommending that HMRC make radical changes their approach to Making Tax Digital (MTD), including delaying implementation, raising the exemption threshold, running a pilot the covers the full reporting cycle and waiting for the software market to catch up. 

External links

MTD: Written evidence to the House of Lords
Our submission to the House of Lords sub-committee on Finance Bill 2016.

MTD: Links to evidence submitted to the House of Lords
Oral and written evidence on MTD ahead of Finance Bill 2016