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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.

In this section

Practical guidance

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.

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 started in April 2019 with Making Tax Digital (MTD) for VAT for businesses with taxable turnover above the VAT threshold.

Webinars and videos

MTD for ITSA - back to basics and myth busting

This webinar from the Tax Faculty will cover the latest rules in detail and explain where we are with the development of the policy and the pilot and what taxpayers and agents can do to prepare.

Wyman Symposium 2021

This year's Wyman Symposium looks at various perspectives on the potential change to the end of the tax year.

Tax Administration Framework Review - Supporting a 21st century tax system

Fundamental elements of the tax system could be set to change in the biggest shake up since self assessment was launched in the last millennium. The government's call for evidence on the tax administration framework review (TAFR), published on Tax Day, 23 March 2021, goes much further than a possible updating of Taxes Management Act 1970. Anita Monteith, Caroline Miskin and Richard Jones delve into the call for evidence in this Tax Faculty webinar.

Articles and features

ICAEW technical round-up: July 2021

This month’s top technical stories include information on the fifth SEISS grant, ICAEW’s response to the government’s proposed reforms for audit and corporate governance, and the FRC’s new Quality Management standards.

Digital transformation – all change

Digital transformation can mean different things to different people; it is a catchall term describing the implementation of new technologies and processes to improve business operations.

Bloomsbury Core Accounting and Tax Service

Eligible firms have free access to Bloomsbury Professional's comprehensive online library, comprising more than 60 titles from some of the country's leading tax and accounting subject matter experts. Find out who is eligible and how you can access the Core Accounting and Tax Service.

Tax returns

A chapter on taxpayers' rights and HMRC powers in relation to tax returns.

Guide to taxpayers’ rights and HMRC powers

Guide to the growing breadth of HMRC powers and the increasingly complex penalty regime for non-compliance.

Making tax digital tracker

The Tracker provides plain English guidance on the operation of MTD, with sections covering VAT, income tax, corporation tax and tax agents in relation to MTD. 

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Representations

ICAEW REP 66/21 Timely payment

In responding to HMRC's call for evidence on timely payment, ICAEW argues that earlier payment of income and corporation tax should not be considered until the economy has recovered and that earlier payment should not be based on in-year estimates without HMRC first demonstrating that they can be a reliable basis for earlier payment.

ICAEW REP 65/21: Tax Administration Framework Review

In responding to HMRC's consultation on the Tax Administration Framework Review ICAEW argues that the starting point of such tax reform should be significant simplification of the underlying tax rules and that HMRC needs to be given the resources and funding to give it the capacity to take on such a major piece of work.

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.

Case studies for Making Tax Digital

A series of short case studies from businesses in a range of industry sectors on how Making Tax Digital has worked for them.

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).

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.

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.

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