Making Tax Digital scheme five times over initial budget
The Chartered Institute of Taxation (CIOT) has criticised HMRC’s handling of the Making Tax Digital project, saying it has spiralled out of control. What’s happened, and what is the latest timetable for rollout?
In a press release, the CIOT commented on a report by the National Audit Office (NAO) that states that the MTD project is now expected to cost five times it’s original budget. The institute said that HMRC was pursuing unrealistic timetables with questionable benefits. It also noted that the move to MTD with the VAT system initially led to VAT liabilities being overstated by £5 billion. The NAO is calling for a fresh business case from HMRC in respect of MTD for Income Tax Self-Assessment (MTD ITSA).
It’s unclear whether the report will have any effect on the anticipated rollout of MTD ITSA, which has already been pushed back. Until anything is announced, it is prudent to assume that things will proceed according to the most recent timetable, i.e. April 2026, with the self-employed and landlords with turnover in excess of £50,000 joining first. Those with income over £30,000 but not exceeding £50,000 will not need to join until April 2027. A start date for general partnerships has not yet been announced. The position for smaller businesses remains uncertain, as HMRC continues to review the suitability of MTD ITSA for these entities.
Related News
-
Mandatory payrolling of benefits in kind delayed
The government has revised plans to introduce the mandatory payrolling of benefits in kind from 6 April 2027, which will now be limited to company cars, vans, fuel and medical benefits. What's the full story?
-
Personal vs company donation to charity
You’re an owner manager and want to make a £5,000 donation to a local charity. You’ve claimed income tax relief under the gift aid scheme for smaller amounts but could it be more tax efficient to make the donation via the company?
-
Uber loses VAT margin scheme appeal
The Court of Appeal has ruled that Uber cannot use the Tour Operators Margin Scheme (TOMS) when accounting for VAT on its ride-hailing services. The decision could have significant implications for businesses that act as intermediaries when supplying services to consumers. What was the dispute about?
This website uses both its own and third-party cookies to analyze our services and navigation on our website in order to improve its contents (analytical purposes: measure visits and sources of web traffic). The legal basis is the consent of the user, except in the case of basic cookies, which are essential to navigate this website.