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Breaking: MTD scheduled for 2022-23 rollout

Among a flood of policy statements, the government gave notice today that it plans to expand the Making Tax Digital (MTD) reporting regime to all VAT-registered businesses from April 2022 and to al unincorporated businesses and landlords turning over more than £10,000 the following year.

21st Jul 2020
Editor in Chief (interim) AccountingWEB
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The MTD timetable was one of many tax policy initiatives pushed to the back burner by the coronavirus crisis, but now the Chancellor and his advisers have had a chance to review the economic wreckage of the past four months, they are keen to press ahead with the digital tax initiative.

Financial secretary to the Treasury Jesse Norman set out their rationale in a written statement published on the Parliament.uk website this morning: “The COVID-19 pandemic… highlighted the need for a more flexible, resilient and responsive tax system that provides businesses and HMRC with more up-to-date information on businesses and their finances, and enables easier identification and better targeting of taxpayer support.”

There was a clear sense of frustration at the Treasury about its inability during the crisis to get a clear picture of what self-employed taxpayers were earning and bringing those businesses into MTD would give HMRC access to that data. As a result, newly published clauses for Finance Bill 2020/21 will pave the way for MTD for VAT to be extended from April 2022 to include ensure every VAT-registered business.

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Replies (8)

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By memyself-eye
21st Jul 2020 14:20

Oh dear - All unincorporated businesses over £10k?
Madness
This F*ck up of a policy is about to get even worse.
Good job I'm quitting next year......

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By tom123
21st Jul 2020 15:24

Is this just MTD for VAT, or MTD for other taxes too?

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By SXGuy
21st Jul 2020 15:26

Other taxes also.

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By SXGuy
21st Jul 2020 15:25

Oh here we go, finally they want to roll out mtd for all businesses over 10k. Never going to happen.

I'm sure they will want it to but in practise, not a chance in hell.

Do they honestly think someone turning over just over 10k is going to want to report quarterly their income and expenses?

Do they think these yearly clients are prepared to pay their accountant more to do 5 submissions a year instead of one?

Anyone who thinks this won't have a cost impact is living in la la land.

As I've said many times before, it will be a logistical nightmare for me, chasing now yearly clients every quarter for information, as well as making time every 3 months for every client to prepare a submission. It's not going to happen.

I always understood mtd for vat, and if even go as far as to say Ltd companies are fine also. Because its not really that much extra work compared to now. But it will not work for the yearly client who turns over such small amounts.

I prey that it will be as simple as reporting income and exp, and they don't expect a full book keeping service matching up to bank statements before submission otherwise I can see a lot of people suddenly falling below 10k to save the hassle.

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By ireallyshouldknowthisbut
21st Jul 2020 15:34

I think the words "good luck with that" spring to mind.

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By bosclibby
21st Jul 2020 16:50

Oh gawd - can I put everything in place to sell up before April 23? - my retirement maybe forced upon me a few years earlier than I'd planned

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By North East Accountant
22nd Jul 2020 12:23

We all know it's a silly idea but HMRC have it in their heads that all "John the Plumber" has to do is snap a receipt and the software will do the rest.

After shelling out a couple of hundred billion on Covid-19 support MTD will happen so they never have to do that again, and they can target support rather than a blanket approach.

And just look at 30 day reporting for CGT, for a tax that's raises 5% of taxes.

As Income Tax raises 25% MTD is gonna happen.

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By EnglishRose
07th Oct 2020 21:41

Will not help most tax payers and will just cause them to waste more time.
I got a MTD for VAT exemption in the end (I was pleased and surprised) so hopefully I might get one for this.

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