8 February: ICAEW’s Tax Faculty is urging members to share their thoughts by 15 February on HMRC’s proposals to expand the Making Tax Digital regime to corporation tax.

HMRC’s consultation on its plans for Making Tax Digital for corporation tax (MTD for CT) closes on 5 March. Ahead of the deadline, the Tax Faculty is asking for ICAEW members to feedback on the design details outlined by HMRC, but also on the practical implications of digital record keeping for corporation tax.

In an article for the latest edition of TAXline, Anita Monteith, Technical Lead and Senior Policy Adviser, highlights that one of the key ways in which members can support ICAEW’s response is to feedback on what the potential costs and benefits may be for businesses of different sizes and types. In particular, how the requirements for digital record keeping differs from the current iXBRL requirements for tagging non-financial data.

Another area on which the faculty is specifically looking for feedback is HMRC’s proposals for a set of minimum categories under which income and expenditure must be categorised. HMRC argues that for smaller firms this list should be aligned with MTD for Income Tax (MTD for ITSA) and the faculty would like to hear members’ views on the list.

The faculty is also interested on feedback relating the requirements for quarterly reporting. This includes whether group submissions by a nominated company might be welcome, and the possibility of standardising claims and elections through software.

“We urge members to read the consultation and start thinking about this sooner rather than later,” says Monteith.

Members can send their comments for consideration for inclusion in the ICAEW response to anita.monteith@icaew.com before 15 February 2021.

More information

• Tax Faculty members can read the TAXline article in full. Alongside the key areas for feedback it provides an overview of the proposed requirements of MTD for CT.
• ICAEW support on MTD is available from icaew.com/mtd
• Free webinar: MTD for Income Tax Self Assessment