Digital Tax

What is Making Tax Digital?

Definition of Making Tax Digital

Making Tax Digital is a government initiative that sets out a vision for ‘a transformed tax system and the end of the tax return’ by 2020.

The aim of the initiative is to make tax administration more effective, more efficient and easier for taxpayers, through the implementation of a fully digital tax system.

The changes outlined in the Making Tax Digital initiative will apply to a wide range of taxpayers, including most businesses, self-employed people and landlords, as well as individual taxpayers.

What’s changing?

HMRC has released consultation papers that outline what it’s planning to do and ask for feedback from taxpayers and their accountants.

It’s also now released summaries of responses to the consultations.

The current plans, in brief, are:

  • The smallest businesses will be exempt from MTD – the original proposal was for “smallest” to be “turnover of £10,000” but following the consultation responses, this figure may change.
  • Taxpayers will send in summaries of their income and expenditure at least four times a year.
  • More taxpayers will be able to use the cash basis of accounting.

When will the changes happen?

Making Tax Digital has a phased roll-out plan which started in early 2016 and is set to end in 2020. Anticipated key milestones include:

  • April 2017 – Pilot of roll-out starts.
  • July – December 2017 – Digital tax accounts show taxpayers an overview of their liabilities in one place.
  • July – December 2018 – Most businesses, self-employed people and landlords start updating HMRC quarterly for income tax and national insurance obligations through accounting software.
  • 2019 – Most businesses, self-employed people and landlords start updating HMRC quarterly for VAT obligations through their accounting software.
  • 2020 – The full range of HMRC services is available through digital tax accounts.

More about Making Tax Digital

More information about the Making Tax Digital initiative, along with a detailed breakdown of timescales and milestones, is available from gov.uk.

Robert Marjoram

About Robert Marjoram

What is your role at Together?
I deal with clients, new business and the development and strategy of the business. I recruit the staff and I suppose you could say set the agenda and vision.

What do you enjoy most in your day to day role?
Dealing with clients. There's such a variety of characters and each business can be completely different even within the same business sector. The principles for accounts, and tax are the same for all businesses. Its the client advice, how they want us to work with and for them that's at the core of everything we do.

What do you find most rewarding in your role?
Its great to take on a new client, start-up or current business, and see them go from good to great. I don't take credit for that because its down to the client but I do see my role as a enabling the client to get the most from their business.

And finally what do you do when your not at Together?
I spend time with my family and have keen interest in Norwich City and other sports. A new interest is walking, visiting the Lakes on the encouragement of friends and next year I am walking The Dolomite's in Northern Italy with my son Alex