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Legislation and official guidance

Links to the government's proposed legislation mandating Making Tax Digital, alongside a comprehensive list of the consultations that have been run on the introduction of MTD and ICAEW's responses.

Legislation

Following the announcement on 13 July 2017, which revised the timetable for MTD, the primary legislation for MTD for both income tax and VAT was enacted in sections 60 to 62 and schedule 14 of  Finance (No 2) Bill 2017. The legislation is largely enabling with the detail in secondary and tertiary legislation which is still in draft form.

Draft Secondary Legislation

Draft MTD: income tax regulations were published in September 2017 and the ICAEW representation 126/17, published in November 2017, commented on this draft legislation. These regulations will not be laid before parliament until the government makes a decision on if and when MTD for income tax should be mandatory. The legislation is not required for the pilot.

MTD for VAT: legislation overview was published in September 2017 and the ICAEW representation 128/17, published in November 2017, commented on this overview.

Draft MTD for VAT regulations were published on 18 December 2017 with a deadline for responses of 9 February 2018. ICAEW is currently developing a response; please send comments to caroline.miskin@icaew.com and neil.gaskell@icaew.com.

Consultations and parliamentary scrutiny

December 2017 consultation

A consultation document on MTD: interest harmonisation and sanctions for late payment was published on 1 December 2017. ICAEW is currently developing a response; please send comments to caroline.miskin@icaew.com

March 2017 consultation

A further consultation document on late submission and late payment penalties and how they should be adapted for MTD was published by HMRC on 20 March 2017. HMRC published a summary of responses on 1 December 2017. See ICAEW REP 68/17 for our response.

January 2017 parliamentary reports

August 2016 consultation

On 15 August 2016 the UK government launched a detailed consultation on Making Tax Digital (MTD) with the publication of six documents.

ICAEW responded to each of the documents on behalf of its members. You can download all of the documents below: