MTD for business overview
HMRC's vision to digitalise the UK tax system is well underway. The transformation will start with Making Tax Digital (MTD) for VAT from April 2019.
Making Tax Digital
Making Tax Digital (MTD) is a fundamental change to the administration of the UK tax system. It will affect how businesses and other organisations, agents and individuals maintain their accounting and tax records and how they transact and communicate with HMRC. MTD transformation projects are being run by HMRC, but should be seen as just one element of the digitalisation of business.
Need to know
In this section
Practical guidance
Making tax digital for VAT - A starting point for members in practice
Technical helpsheet to help members in practice with implementing Making Tax Digital for VAT. It gives a breakdown of the key dates and next steps on keeping digital records, setting up an HMRC Agent Services Account, preparing clients for MTD, and using MTD compliant software.
Engagement letters and privacy notices
ICAEW has developed guidance for practice firms on what to include in engagement letters. This page provides a series of sample wordings to help you draft your own engagement letters.
MTD for VAT penalties
The introduction of Making Tax Digital for VAT has prompted discussion about the risk of penalties where introducing new processes breach of the regulations.
Signing up to Making Tax Digital for VAT
Agents and businesses that have understood the MTD for VAT requirements and are ready to join the pilots have to follow an online process to sign up. HMRC has provided a step by step guide which we reproduce here.
Preparing your practice for MTD
Agents will need to take steps to prepare both their own practices and their clients for the disruption that Making Tax Digital and digitalisation will cause to the market for accounting and tax services.
MTD for business overview
HMRC's vision to digitalise the UK tax system is well underway. The transformation will start with Making Tax Digital (MTD) for VAT from April 2019.
MTD and VAT
The first stage of HMRC's Making Tax Digital (MTD) programme focuses on VAT and imposes new requirements keeping on some VAT registered businesses and organisations from April 2019.
Software for MTD
During the introduction of Making Tax Digital (MTD), ICAEW is sharing the latest information about the software that taxpayers and agents will need to keep digital records and to submit information to HMRC.
Webinars and videos
International digitalisation of tax
The webinar will discuss key findings from the report on how to best manage the modernisation of a tax administration, including examples and anecdotes from the US and China, but also lesser-known stories from the likes of Estonia, Brazil, and Italy.
Making Tax Digital - Are you ready?
Join Anita Monteith, Sarah Ghaffari and Caroline Miskin for the latest information on preparing for MTD for VAT which starts from April 2019.
TAXtalk January 2019
With only 2 weeks until the 31 January self assessment deadline, the team discusses last minute filing issues practitioners are reporting as they continue filing tax returns, including a warning about payments on account. Making Tax Digital for VAT starts in just over 11 weeks so the discussion also looks at more tips for coping and has some up to date news on how MTDV is shaping up.
TAXtalk December 2018
This month's discussion focuses on the tax help and support ICAEW offers its members through the Technical Advisory and Enquiry Service, as well as the additional resources on offer exclusively to Tax Faculty members and members of Faculties online. The team will also discuss some of the questions the Institute has been receiving on Making Tax Digital (MTD) and the progress of the Finance Bill.
Tools for agents
Client MTD factsheet - non VAT registered businesses
A factsheet developed by ICAEW Tax Faculty to be shared by accountants to clients that are not VAT registered businesses and would like more information on Making Tax Digital.
Client MTD factsheet - VAT registered businesses
A factsheet developed by ICAEW Tax Faculty to be shared by accountants to clients that are VAT registered businesses and would like more information on Making Tax Digital.
Client MTD factsheet - voluntarily VAT registered businesses
A factsheet developed by ICAEW Tax Faculty to be shared by accountants to clients that are voluntarily VAT registered businesses and would like more information on Making Tax Digital.
Upcoming MTD events
Articles and features
MTD compliance updates
Kim Hau assesses the results of a Thomson Reuters survey into how firms are preparing for MTD.
The case for MTD for VAT
Glover Stanbury’s Kevin Salter explains why Making Tax Digital for VAT is sure to make some things easier in 2019, even if people don’t take to digital record-keeping immediately.
Countdown to Making Tax Digital for VAT
As implementation of Making Tax Digital for VAT looms large, Caroline Miskin of the ICAEW Tax Faculty looks at the final push to get the new system in place and working properly.
Tax: the bigger digital picture
As the UK implementation of Making Tax Digital comes closer, David Lyford-Smith reports on how other countries are handling digitalisation of the tax system, including Australia, Brazil, China, Estonia, Italy, USA and more
Representations
ICAEW REP 176/16
MTD - Transforming the tax system through the better use of information
ICAEW REP 175/16
MTD - Tax administration
ICAEW REP 174/16
MTD - Voluntary pay as you go
ICAEW REP 173/16
Business income tax: Simplified cash basis for unincorporated property businesses
Further support
Useful links
Some resources that we link to may pre-date the latest amendments to the relevant tax regulations. While these links contain useful information, please treat them with appropriate caution.
Software suppliers supporting Making Tax Digital for VAT
List of companies who are supplying suitable software to support the MTD for VAT pilot. These suppliers have tested their products in HMRC's test environment and have already demonstrated a prototype of their software to HMRC.
VAT Notice 700/22: Making Tax Digital for VAT
Notice giving updated guidance on digital record keeping and return requirements of MTD for VAT. It explains the digital records that businesses must keep, ways to record transactions digitally in certain special circumstances, and what counts as ‘functional compatible software’.
Making Tax Digital: changing the scope and pace - technical note
Technical note giving a revised statement of impacts for the Making Tax Digital for Business programme to reflect the changed scale and scope of the mandatory elements announced in the government's Written Ministerial Statement of 13 July 2017.
Machine learning and its impact on accounting
A summary of a panel discussion on machine learning, artificial intelligence and its impact on accounting. The article looks at predictions for 2018 and the implications for making tax digital (MTD).
Overview of Making Tax Digital
Policy paper explaining the foundations of MTD, the impact on individuals and businesses, links to consultations, the next steps for implementing MTD for business, and case studies.
Finance Bill: Written statement - HCWS47
Statement made by Mel Stride, Financial Secretary to the Treasury, announcing policy changes to the timeframe and scope of Making Tax Digital rules.
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