The MPs say the programme initiated by HMRC ‘could be a disaster’ if implemented in such a short span without proper evaluation, and release a set of extensive recommendations
Making Tax Digital intended to digitalise the UK tax reporting procedure and introduce a quarterly principle with four regular submissions and ultimate end-of-year finalisation for landlords and self-employed is supposed to be launched as of April 2018, however the Treasury Committee in its exhaustive report calls for the project to be put off ‘until at least 2019-2020’.
The document also criticises the current £10,000 initial reporting threshold, suggesting the VAT threshold of £83,000 to be applied. Further recommendations imply pilot schemes to be arranged in a more comprehensive way, covering every aspect of the reporting cycle. The situation around software also caused the Committee’s concerns attributed to the lack of information on the whole range of providers and software that could be adapted for specific businesses.
The final consultation for incorporated businesses HMRC promised to release before the end of 2016 can be expected until the end of January. However, the whole project schedule is very likely to be shifted for a much longer period.