2022 is another big year for Making Tax Digital (“MTD”) with the extension of MTD for VAT to all VAT registered businesses from 1 April 2022. HMRC started the year off with a Press Release asking if businesses are ready and providing advice on the steps needed to prepare. Businesses and taxpayers may also be able to sign up for the MTD for income tax (which commences for the self-employed and landlords from 1 April 2024) pilot via their software provider. The option to sign up directly via GOV.UK has recently been removed as a roadmap for the pilot is expected to be published in Spring. HMRC has asked us to share the below update on the MTD for income tax pilot which has been recently provided to software developers: “As we progress the MTD ITSA pilot it is important that we manage it in a controlled way so that we can test and expand effectively. So, from 9 December, customers will only be able to sign up for the MTD ITSA pilot through their software provider (in essence how it is currently happening). As we expand the pilot, this will enable HMRC and developers to ensure that all customers entering the pilot (and their agents where applicable) receive the support and guidance that they need. Customers who are already participating in the pilot can continue to do so. HMRC will be sharing more detail in early 2022 including the pilot outline plan, which will include a roadmap identifying when various customer types will be eligible to join MTD ITSA. MTD also continues to work on the customer support model to support more customers coming into the service from April 2022.” Relevant publications on GOV.UK are as follows:- Sign up as an individual for Making Tax Digital for Income Tax; and Sign up your client for Making Tax Digital for Income Tax. The Institute continues to discuss MTD with HMRC and will update members in Chartered Accountants Tax News.

HMRC’s latest schedule of webinars is now available for booking. Spaces are limited, so take a look now and save your place. If you have any questions, please send them to team.agentengagement@hmrc.gov.uk prior to the webinar, including the title of the webinar in the ‘Subject’ line of your email. HMRC will answer as many as possible on the day. Declaring your grants on your Company Tax Return (CT600): register here This webinar provides an overview of how to report coronavirus support payments and grants on a company tax return, what happens if you’ve claimed too much and records you need to keep. Making Tax Digital for VAT: register here This webinar will provide some of the basics of Making Tax Digital for VAT. This will include what’s changing, using software, and keeping digital records, plus an introduction to penalty reform. From April 2022, these requirements will apply to all VAT-registered businesses, to include those that have a turnover below the VAT threshold.

In response to our letter in October, Chartered Accountants Ireland will be meeting with the Financial Secretary to the Treasury in the next few weeks to discuss the concerns we expressed in respect of basis period reform, Making Tax Digital and tax complexity. We’d like to hear your views on these important areas. Email leontia.doran@charteredaccountants.ie by the end of this week with your views.