19 August 2016
HMRC have recently published several consultation documents on the Making Tax Digital strategy that was initially announced within the 2015 Budget. This was heralded as making all taxpayers dealings with HMRC as being via electronic means; with the aim of making HMRC into one of the most digitally advanced tax administrations in the world by 2020. However, HMRC have subsequently announced several exemptions to this grand plan including:
- 1.3 million small businesses with a turnover of under £10,000 will be exempt from updating HMRC quarterly, or keeping their records digitally; and
- Individual landlords will similarly be exempted.
The consultation documents also confirm that those who cannot go digital will not be required to do so.
In total there are six consultations papers which all run until 7 November 2016 for comment upon. The consultations cover such topics as:
- Bringing tax into the digital age;
- Simplifying tax for unincorporated businesses;
- Simplified cash basis for unincorporated property businesses;
- Voluntary payments of tax in advance of liabilities due;
- Tax administration; and
- Transforming the tax system through better use of information.
We will of course keep you updated on how these consultations progress, however, in the meantime, for further information on these consultation papers, please click here. Alternatively, if you need any assistance or advice on the digitisation of your affairs, please seek advice from your local Kent expert.