HMRC appeals to accountants for MTD pilot candidates
Earlier in 2022, the number of taxpayers eligible for the current Making Tax Digital pilot was expanded. HMRC is now actively encouraging accountants and tax advisors to refer their clients to the service. What does it mean if your advisor recommends you for the pilot?
Making Tax Digital for Income Tax Self-Assessment will start to be rolled out to some businesses in 2024. Ahead of this, HMRC is running a pilot to ensure that the new system gets a thorough testing before becoming mandatory. However, take up has reportedly been poor. In its latest Agent Update, HMRC encourages authorised representatives, including accountants and tax advisors, to recommend clients for the pilot scheme. If you are approached by your advisor, what should you keep in mind? While you're not obliged to join the pilot, there are some advantages to doing so. It gives you the chance to get used to the system in the testing period, meaning there will be no penalties for getting things wrong. It's also an opportunity to help provide feedback on how things can be improved.
HMRC also confirms that the pilot will be further expanded later in 2022 to include taxpayers who need to report the following:
- Construction industry scheme deductions
- Private pension contributions relief claims
- Student loan repayments
- Additional information (SA101)
- Foreign income
- Voluntary Class 2 NI contributions
- Recipients of transferable marriage allowance
- Capital gains tax reporting
Related Topics
-
Practical guide: Tax-efficient will planning with residential property
An individual has a significant property portfolio which provides them with their sole source of income. They want to gift shares in some property to their daughter but retain the income. Can they do this without triggering the reservation of benefit rules?
-
Will HMRC treat late processed invoices as errors?
Your business processes invoices when they have been approved by budget holders, so some will be processed a month late, delaying your input tax claim. How might HMRC’s updated guidance help here?
-
Are redundancy payments tax deductible?
A seemingly simple question we’re often asked is how much tax relief a business is entitled to for redundancy payments. The answer is that it depends on the situation. How might the circumstances of a redundancy affect the tax deduction?