Responding to this afternoon’s Written Ministerial Statement on Making Tax Digital (MTD),1 Adrian Rudd, Chair of the joint CIOT/ATT Digitalisation and Agent Strategy Working Group, said:
“The Spring Statement has put beyond doubt that MTD for VAT will go ahead as planned from 1 April 2019. Anyone holding out for a last minute reprieve due, for example, to Brexit uncertainty, will need to focus on this urgently.
“While the Government confirmed it will apply a ‘light touch approach’ to late filing and record keeping penalties in the first year of MTD, it still expects businesses to do their best to comply with the requirements, so the light touch may not benefit businesses who make no attempt to apply MTD.”
The Government also confirm today that MTD would not be extended to other taxes or businesses in 2020.
Adrian Rudd said:
“We welcome the announcement that, in practice, MTD will not be further extended until at least April 2021, either to bring income tax within the scope of MTD, or businesses who are voluntarily registered for VAT. This delivers on the Tax Minister’s promise that the Government will not widen the scope of MTD beyond VAT before the system has been shown to work well.”2
While 1 April is just 19 days away, the CIOT cautioned businesses against signing up before they are ready.
Adrian Rudd said:
“While some of the requirements of MTD apply from 1 April 2019, this is not the deadline for enrolling into MTD. For many businesses the deadline for signing up may be nearer the beginning of August 2019. Businesses need to enrol into MTD for VAT at the right time, and only when they are confident that they can submit their next VAT return using MTD-compatible software, otherwise significant problems can arise. We have produced a guide to the sign up ‘windows’, to help businesses transition into MTD as smoothly as possible.”3
Notes to editors
4. The Chartered Institute of Taxation (CIOT)
The CIOT is the leading professional body in the United Kingdom concerned solely with taxation. The CIOT is an educational charity, promoting education and study of the administration and practice of taxation. One of our key aims is to work for a better, more efficient, tax system for all affected by it – taxpayers, their advisers and the authorities. The CIOT’s work covers all aspects of taxation, including direct and indirect taxes and duties. Through our Low Incomes Tax Reform Group (LITRG), the CIOT has a particular focus on improving the tax system, including tax credits and benefits, for the unrepresented taxpayer.
The CIOT draws on our members’ experience in private practice, commerce and industry, government and academia to improve tax administration and propose and explain how tax policy objectives can most effectively be achieved. We also link to, and draw on, similar leading professional tax bodies in other countries. The CIOT’s comments and recommendations on tax issues are made in line with our charitable objectives: we are politically neutral in our work.
The CIOT’s 18,000 members have the practising title of ‘Chartered Tax Adviser’ and the designatory letters ‘CTA’, to represent the leading tax qualification.
The Association of Taxation Technicians (ATT)
The Association is a charity and the leading professional body for those providing UK tax compliance services. Our primary charitable objective is to promote education and the study of tax administration and practice. One of our key aims is to provide an appropriate qualification for individuals who undertake tax compliance work. Drawing on our members' practical experience and knowledge, we contribute to consultations on the development of the UK tax system and seek to ensure that, for the general public, it is workable and as fair as possible.
Our members are qualified by examination and practical experience. They commit to the highest standards of professional conduct and ensure that their tax knowledge is constantly kept up to date. Members may be found in private practice, commerce and industry, government and academia.
The Association has over 8,000 members and Fellows together with over 5,600 students. Members and Fellows use the practising title of 'Taxation Technician' or ‘Taxation Technician (Fellow)’ and the designatory letters 'ATT' and 'ATT (Fellow)' respectively.