HMRC presses on with roll-out of Making Tax Digital for Income Tax (MTD IT) – but changes plans for Corporation Tax.
MTD IT is now well on the horizon, with updated draft legislation published over the summer. Significantly, HMRC also published a Transformation Roadmap, underscoring the fact that digital self-serve is very much the direction of travel. According to this document, ‘HMRC will look very different by 2030. Almost all straightforward customer queries will be handled digitally or automatically. At least 90% of customer interactions expected to be digital’.
MTD and Corporation Tax
The surprise announcement over the summer was that plans to introduce MTD for Corporation Tax had been abandoned. But this doesn’t mean that there’s going to be no change for the Corporation Tax population. Though there’s no current Plan B for MTD for Corporation Tax, other comments in HMRC’s Transformation Roadmap suggest things will unlikely stand still.
The Roadmap says: ‘HMRC will modernise services for Corporation Tax, beginning with a renewal of internal systems for Corporation Tax to provide the foundation for future improvements . . . developing an approach to the future administration of Corporation Tax that is suited to the varying needs of the diverse Corporation Tax population.’
‘HMRC recognises that this population includes a wide range of entities and situations. From small businesses to multinationals, from charities and property management companies to unincorporated associations. HMRC will work with stakeholders to identify changes that provide the best outcomes . . . and is committed to consult and provide early clarity and assurance on both the design and timing of changes.’
Helping with digital compliance
HMRC’s new world focuses on digital compliance, which will inevitably challenge taxpayers. We are on hand to advise on the best way ahead for you and your business. Please don’t hesitate to contact us with any queries you may have.