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Legislation and official guidance

Links to the enacted and 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.

Primary 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 delegated to secondary and tertiary legislation.

Secondary Legislation

were laid before parliament on 28 February 2018. ICAEW representation 18/18, published in February 2018, commented on the draft of these regulations which were published in December 2017. HMRC continues to work on the VAT Notice and other guidance that will support these regulations.

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

Draft MTD: income tax regulations were published in September 2017 and ICAEW representation 126/17, published in November 2017, commented on these draft regulations. 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 secondary legislation is not required for the pilot.


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 representation 29/18 commented on these proposals.

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: