HMRC / government documents

 

Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) – HMRC Q&As
HMRC have provided a list of Q&As to the most commonly asked questions during their MTD for ITSA webinar held on 29 July 2020. 

Due to the large number of questions asked on the day (more than 300) they were not able to answer anywhere near all of the questions during the webinar itself. They have therefore provided all attendees with answers to a few of the more commonly asked questions.

The Q&As are here.

In addition, we understand that there were some complex questions being asked and some things are still in the early and developmental stages, which means that HMRC are not yet in a position to answer all the questions but that they will be reviewing and categorising the questions, and seeking clear answers where they can to help inform what they cover in future webinars. 

In respect of the two most commonly asked questions which were about free software, and COVID-19 support, HMRC have provided the following additional information:

Free software
“Free software will be available under ITSA for those taxpayers with the simplest affairs. And you will rightly ask what does that mean? Two things here. The announcement of ITSA coming in 2023 was only made on 22 July 2020. As you will have seen on the software choices pages not many products have yet been through our testing process and put up on GOV.UK. The software developers did not know the announcement was coming, but they have reacted quickly and positively to start discussions with HMRC to look to start developing their products. This will take time, probably many months of development and testing before they come to market.

“Equally, HMRC have started discussions with software developers to explore and define what will need to be included in such free software products. Again, this will take a little time, but is the key building block that we need to have in place”.

COVID-19 support income
“As regards COVID-19 support income, frankly, neither we nor you could have expected the devasting effects of the pandemic, and the speed and scale of the Government interventions. We had not factored such income into our design plans and, to build them in now would take too long and would not be in place before April next year, when a new tax year will start”.


Making Tax Digital VAT Service Progress Update from HMRC – 15 August 2019


MTD for VAT HMRC guidance and information

VAT Notice
HMRC public notice VAT 700/22 Making Tax Digital for VAT
(Originally published on 13 July 2018 with latest update on 17 October 2019)

Software suppliers
A list of software suppliers with details about the product’s capabilities for products that can file VAT returns and/or income tax updates can be found here. This is regularly updated.

Stakeholder Pack: Information for VAT businesses and other VAT entities on what they need to do to prepare for Making Tax Digital
Making Tax Digital: how VAT businesses and other VAT entities can get ready
(17 September 2018, updated 10 January 2019)

Stakeholder communications pack
Making Tax Digital for Business - stakeholder communications pack
(13 July 2018, updated 11 February 2019)

 


HMRC Newsletters

Making Tax Digital Update for Agents Issue 13: 22 July 2020
Making Tax Digital Update for Agents Issue 12: 17 December 2019
Making Tax Digital Update for Agents Issue 11: 28 October 2019
Making Tax Digital Update for Agents Issue 10: 20 September 2019
Making Tax Digital Update for Agents Issue 9: 19 August 2019
Making Tax Digital Update for Agents Issue 8: 5 July 2019
Making Tax Digital Update for Agents Issue 7: 14 May 2019
Making Tax Digital Update for Agents Issue 6: 30 April 2019
Making Tax Digital Update for Agents Issue 5: 29 March 2019
Making Tax Digital Update for Agents Issue 4: 4 March 2019
Making Tax Digital Update for Agents Issue 3: 14 February 2019
Making Tax Digital Update for Agents Issue 2: 11 January 2019
Making Tax Digital Update for Agents Issue 1: 20 December 2018

Agent Update, December 2018 - January 2019, Issue 69
HMRC have published their latest Agent Update
(17 December 2018)

 


HMRC assistance: Webinars and videos

HMRC have created webinars and videos to assist with using software to send income tax updates and VAT returns to HMRC if you are an agent or a business.

HMRC Talking Points webinars for tax agents
Talking Points are weekly online digital meetings for tax agents and advisers. They usually last 45 minutes to an hour and focus on topics agents have said they’re interested in or on new issues identified by agents and HMRC that may have widespread impact. HMRC experts will be available to answer questions.

All HMRC’s Talking Points webinars including those focused on MTD are listed on GOV.UK where it will also tell you how to register.  Recordings of past webinars are also available from this link

 


HMRC / government documents

House Of Lords Economic Affairs Committee 3rd Report of Session 2017–19 HL Paper 229
Making Tax Digital for VAT: Treating Small Businesses Fairly
(22 November 2018)

Deferral of MTD for VAT mandation to 1 October 2019 for businesses with more complex VAT positions (see criteria)
HMRC Policy Paper - Overview of Making Tax Digital
(17 October 2018)

HMRC’s terms of participation’ for inclusion in the Income Tax pilots

Self-employed businesses and landlords can voluntarily join the pilot for Making Tax Digital for Income Tax. This requires a login via the Government Gateway and a link can be found here on gov.uk. Once logged in, you can view the terms of participation for businesses and agents, which we have reproduced below:

Consultation outcome from the MTD interest and late payment penalties consultation
HMRC has published its summary of responses from the MTD interest and late payment penalties consultation here on gov.uk. The document includes chapters on interest rates and Corporation Tax, interest and VAT, late payment penalties and the interaction with late payment interest and next steps. The CIOT response to the consultation can be found here.

Making Tax Digital: changing the scope and pace - technical note
Making Tax Digital for Business
(1 December 2017)

HMRC's Overview of Making Tax Digital
Introduction to Making Tax Digital
(Updated 31 July 2017)

HMRC’s response documents
Making Tax Digital: Bringing Business Tax into the digital age - consultation and outcome 
Business Income Tax: Simplifying Tax for unincorporated businesses 
Business Income Tax: Simplified cash basis for unincorporated property businesses 
Making Tax Digital: Voluntary pay-as-you-go 
Making Tax Digital: Tax Administration 
Making Tax Digital: Transforming the tax system through the better use of information 
Making Tax Digital: An overview for small businesses, the self-employed and smaller landlords 
(31 January 2017) 

Making Tax Digital: sanctions for late submission and late payment
(December 2017)

HMRC’s MTD ‘launch’ and landing page
Making Tax Digital paper
Landing page
(December 2015)