Making Tax Digital
Before Making Tax Digital is mandated, shouldn’t we have a single income tax IT system for all?
Another self assessment (SA) season is behind us and HMRC has almost completed the PAYE reconciliations that finalise the liability for PAYE taxpayers who are not required to complete returns. Huge effort has been put in by taxpayers, agents and HMRC staff to close off income tax liabilities for 2018/19. But shouldn’t it be much easier for everyone?
My article in the January 2020 issue of TAXline explored some of the questions that need to be considered before Making Tax Digital (MTD) for income tax is mandated. I am concerned that tacking MTD for the reporting of income from self-employment and from property on to income tax systems that are not working well will only make matters worse. In what way are they not working well and what might be a better approach?