The Chartered Institute of Payroll Professionals ……………………………………………………………Policy News Journal
businesses will now be able to continue to use spreadsheets to record receipts and expenditure, which they can then link to software to automatically generate and send their updates to HMRC - this was requested by a wide range of stakeholders, particularly small businesses and the Treasury Select Committee free software will be available to the majority of the smallest businesses businesses that cannot go digital will not be required to do so all self-employed businesses and landlords with a turnover under £10,000 a year will not have to keep their records digitally or make quarterly updates, but can do so if they wish the option to account for income and expenditure on a simple ‘cash in, cash out’ basis will be extended, helping an extra 2.5 million self-employed businesses and unincorporated landlords charities will not have to keep their records digitally or make quarterly updates customers will have at least 12 months to become familiar with the changes before any late submission penalties will be applied; following feedback from respondents, HMRC will also consult again in the spring on a new penalty model HMRC will pilot these digital systems with hundreds of thousands of businesses before rolling them out to ensure the software is user friendly, and to give businesses and landlords time to prepare and adapt. A summary of feedback, the government’s decisions and HMRC’s next steps are set out in the six individual consultation response links below. If you’re short of time, HMRC has published an overview of the responses which draws out the key conclusions from each of the consultations.
Bringing business tax into the digital age - summary of responses Tax administration - summary of responses Transforming the tax system through the better use of information - summary of responses Voluntary pay as you go - summary of responses Simplifying tax for unincorporated businesses - summary of responses Simplified cash basis for unincorporated property businesses - summary of responses
Legislation The government will legislate in Finance Bill 2017 for the first part of the Making Tax Digital: Bringing Business Tax into the Digital Age reforms. This will include the primary legislation required to commence the Income Tax elements of these reforms from April 2018. The government published in draft on 31 January 2017 the core primary legislation required to implement these reforms. A final version of these provisions and the remaining primary legislation will be published in Finance Bill 2017. At that time, the government will also publish, in draft form, the accompanying secondary legislation required to implement these reforms for Income Tax.
Bringing Business Tax into the Digital Age: legislation overview
Digital reporting and record keeping for business: Income Tax
CIPP comment As these consultations are specific to certain MTD elements and groups, they will not be of interest to everyone; however the Policy Team will be reading the response documents and draft legislation in detail to assess which areas are relevant to payroll professionals and employers in general. More to come on the practical implications of these reforms.
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Making Tax Digital: Tax Administration 28 February 2017
One of the six Making Tax Digital (MTD) consultations published in 2016 sought views on how to adapt existing tax administration powers to support the introduction of MTD.
Tax administration legislation governs the way in which HMRC interacts with its customers. This includes tax returns, assessments, claims, data gathering, payment, compliance, interest, penalties, information powers, appeals and time limits.
The Chartered Institute of Payroll Professionals
Policy News Journal
cipp.org.uk
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