Chartered Tax Advisers & Accountants

Making Tax Digital

The idea of Making Tax Digital was first mooted in the 2015 Autumn Statement with the announcement that the Government wanted to replace the annual tax return with some form of quarterly accounting for the self-employed, landlords and partnerships.  Limited company obligations will also follow.  As more and more people become aware of this "quarterly reporting", concern is growing as to how this will impact on the self-employed.  

The Government's consultation on Making Tax Digital closed on 7 November 2016 and M&S submitted their responses to these consultations on 4 November 2016.  We expect final decisions regarding the consultation will be announced in the forthcoming 2016 Autumn Statement on 23 November.  As M&S are deeply concerned about these changes and their potential impact, we will be watching the Autumn Statement more closely than usual, and will provide our usual summary shortly afterwards.

We hope the information in this page will prove useful to you but if you have concerns as to what these changes might mean for you or your business please contact Stewart McKinnon, Tax Director or Wendy Cheung, Tax Manager or by emailing makingtaxdigital@msactax.co.uk


Third Party Survey - what do HMRC’s digital tax changes mean for you?

Published On: 19/10/2016

On the back of the proposed change to make a large swathe of businesses submit tax returns quarterly rather than annually as at present, one of our clients conducted a survey to investigate this further.  M&S also circulated this survey via our mailing list and, while not statistically significant, the results were interesting, revealing that a lot of people didn’t know much about what was happening.

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Making Tax Digital - Are We Any Further Forward?

Published On: 21/09/2016

On August, 15, HMRC announced the results of the consultation process on their proposals to radically alter the tax system.  The result was; another consultation!   More specifically, they published a further 250 pages of thoughts on Making Tax Digital (on top of the videos, etc. already produced) with the new consultation running to 7 November 2016.

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Making Tax Digital - Compulsory Change or Pay The Penalty

Published On: 21/09/2016

‘Making Tax Digital’ is a new approach proposed by HMRC to the reporting of business accounts so that the correct tax can be collected.  In essence, rather than the annual requirement to submit a tax return, HMRC now wants a return to be done once a quarter, although the tax due will only be paid annually as at present.  Businesses, of all types will have to use compatible software to keep their records, and they will, in most cases, need to pay for this software.  As awareness of these changes grows, it is starting to cause many business owners some concern.

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Making Tax Digital

Published On: 15/08/2016

Over a month after they expected to issue an update on Making Tax Digital and the changes being considered to the tax system for sole traders, partnerships and limited companies in the UK, HMRC has today done so.

 

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What are the costs to your business of HMRC requiring the self-employed to do four tax returns a year?

Published On: 13/05/2016

One of our clients is carrying out a survey (independent of ourselves) to ask self-employed businesses if they know about the proposed changes by HMRC to self assessment tax returns and what, if any, problems they will cause.  The survey, which can be accessed by clicking here, only takes a few minutes to complete and we’d be grateful if you would help with this.  We will be able to get access to the results and report them back to you later this year.

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Making Tax Digital - A Client's Perspective

Published On: 21/04/2016

If it looks like a duck, swims like a duck, and quacks like a duck… Busting the myths of the HMRC ‘Myth Buster’

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Making Tax Digital - Our Concerns

Published On: 21/04/2016

The article below was published in The Courier on Tuesday 19 April 2016, expressing our concerns over the new quarterly tax filing regime.

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Budget 2016 - A Rabbit Or Two!

Published On: 18/03/2016

With the deferral of the pension changes, the headlines were undoubtedly the introduction of the “Sugar Tax” and the severe cuts in state benefits that had been widely forecasted.

For once, we are pleased to say that for many of our clients, the impact of the measures announced in Budget 2016 are unlikely to be significant and in certain cases favourable. Multi-nationals and soft drinks manufacturers were clearly the focus of most new tax measures whilst some of our clients will benefit from the changes announced to taxation for the Oil and Gas sector.

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The Digital Age – What’s in a Name!

Published On: 22/02/2016

Last week, HMRC held a discussion forum in Edinburgh about the new tax system that is to be introduced by 2020.  It is known as “Making Tax Digital” and the presentation was on how HMRC saw this being implemented.  It forms part of the consultation process that is currently being conducted and feedback from selected tax specialists was being sought at this meeting.

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Boldly Into The Digital Age

Published On: 22/01/2016

The end of the annual tax return is nigh or at least so we are led to believe with more details emerging in the Autumn statement on what this will mean for taxpayers.  Once HMRC expanded on their plans that potentially annual returns would be replaced by some form of interaction with HMRC on a quarterly basis it is fair to say all hell broke loose.  Such was the controversy about the plan that it led to an irate businessman called Paul Johnson to start an online petition objecting to the proposals and due to the success of the petition this matter will now be debated in parliament on 25 January.

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