HMRC Making Tax Digital programme ‘progressing well’, minister claims
Department is contacting businesses to encourage early enrolment ahead of use becoming mandatory in August
HM Revenue and Customs’ Making Tax Digital programme is “progressing well”, financial secretary to the Treasury Mel Stride has claimed.
Responding to a written parliamentary question, the Treasury minister said that 500,000 firms – all of which will be required to use MTD from next year – had been invited to join a pilot from October onwards.
Using MTD will be required to file all business VAT returns covering a period beginning on 1 April 2019 or later, Stride said. For firms that file quarterly returns, this will mean that, in effect, using the new digital platform will be mandatory from 7 August onwards.
- ‘There is incredible demand out there to do this’ – HMRC to roll on with Making Tax Digital
- Brexit demands force HMRC to put digital-transformation projects on hold
- HMRC praised for use of public consultations on Making Tax Digital programme
“HMRC is continuing to send letters to all businesses in scope, raising their awareness and inviting them to join early so that they can test the service before mandation,” he added.
The government has also made significant strides in terms of the range of software options businesses can use to keep records file their VAT returns. In July, 18 publishers were unveiled as the first tranche of firms to achieve compatibility with HMRC’s VAT systems. There are now 60 companies on the list, with over 100 more in the process of developing a compatible product.
Stride said: “A variety of products at different price points are available – including some that are free – and some can be used with a spreadsheet for those who prefer not to make the move to a fuller software product."
His comments come just a few weeks after a report from a parliamentary select committee urged HMRC to delay the rollout of Making Tax Digital for VAT by a year. The committee criticised the department for having "neglected its responsibility to support small businesses”.
Share this page
CONTRIBUTIONS FROM READERS
Please login to post a comment or register for a free account.
In a piece written for PublicTechnology, parliamentary secretary Alex Burghart discusses progress with One Login and the significance of legislative changes
In the first of a series of exclusive interviews, the head of government’s ‘Digital HQ’ talks to PublicTechnology about the Central Digital and Data Office’s work to unlock £8bn...
MPs found that ‘inefficient’ manual processes contributed to a pandemic backlog of driving licence applications from those with notifiable medical needs
Department began piloting limited use of online system in October 2020
Related Sponsored Articles
The traditional reactive approach to cybersecurity, which involves responding to attacks after they have occurred, is no longer sufficient. Murielle Gonzalez reports on a webinar looking at...