Jim Harra, tax assurance commissioner at HMRC, has been making soothing noises about Making Tax Digital (MTD) while the tax department digests responses to the consultation documents.
In a letter to the Financial Times coinciding with the end of the MTD consultation period, Harra said HMRC will not be asking anyone to file accounts five times a year, nor introducing in-year quarterly payments.
“Businesses will simply send in-year updates to HMRC using information collated automatically by the same software used to record day-to-day transactions,” he said.
On the costs issue flagged up across by the profession, Harra said that businesses already keeping records digitally should see no additional costs at all.
He added: “Free software will be there for businesses with the most straightforward affairs, and we are looking at additional assistance with transitional costs.”
However, many of the professional bodies specifically highlighted costs as a major stumbling block in their responses.
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About Robert Lovell
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