HMRC’s changing priorities

Mark Morton
3 May 2018 00:00

On 30 April 2018 HMRC shared a statement about how they are prioritising change in the department.

This acknowledges the challenges in:

exiting the EU; and
the ambition to become the world’s most digitally advanced tax authority.

While some of the finer details are still being worked out, the upshot is that, to achieve the above, some other work areas need to be shifted down the priority list.

Delayed projects

Plans to introduce further digital services for individuals - DELAYED

There will be ‘halted progress’ on simple assessment and real-time tax code changes.

Additional services in this area will only be added where they reduce phone or post contact or otherwise deliver ‘significant savings’.

Digitalisation of services affecting fewer individuals - DELAYED

This includes Inheritance Tax payments, Tax Advantaged Venture Capital Schemes applications and PAYE Settlement Agreements.

Online service for new tax credit claims - DELAYED

Efforts will instead be focussed on improving the Tax Free Childcare system.

Creation of the single digital account for all business customers – ‘HAPPENING AT A SLOWER PACE’

The single digital account remains an aim of the department and they stress it will not impact the delivery of Making Tax Digital.

Still ongoing

Voluntary Making Tax Digital for Business service for income tax - STILL AVAILABLE

This trial will continue to be available for any sole trader wishing to make quarterly updates to HMRC. More on this topic can be viewed here.

Mandatory Making Tax Digital for VAT - STILL ‘ON TRACK’

For those VAT Registered businesses (corporate and non-corporate) with a turnover in excess of the £85,000 VAT Registration threshold, HMRC state that they are still on track to mandate digital record keeping and VAT submissions for all VAT periods commencing on or after 1 April 2019.

In addition, the Government has repeated that, as confirmed last July, it will not mandate any further MTD for Business changes before 2020, at the earliest.

How can we help

Find out how we can help your firm prepare for changes in regulation relating to Making Tax Digital for VAT. We can also help you communicate key updates to your clients.