HMRC launch MTD pilot for “hundreds of thousands” of businesses

HM Revenue & Customs (HMRC) has launched its first Making Tax Digital (MTD) pilot, a system which will see the end of paper tax returns and the introduction of quarterly digital tax reporting.

It comes a year before many businesses, self-employed people, and landlords are due to enrol into the system.

HMRC said it will invite “some” businesses and their agents to sign up for a trial of reporting income and expenses online.

“As soon as the new service has been tested with the first group of businesses and agents, other customers will be able to join the pilot. These customers will be able to report their income and expenses for the quarter they join as well as any previous quarters,” it said.

It added that MTD would be piloted by “hundreds of thousands” before being rolled out.

The official MTD roll out will be between April 2018 and April 2020, depending on your reporting requirements. Businesses paying Corporation Tax will not be required to use MTD until 2020, but they will have to use MTD to fulfil their VAT obligations before then.

An HMRC online agent blog published last month stated: “From April we’ll start our live pilot of the changes with businesses and agents. We’ll start with small numbers but aim to have hundreds of thousands of small businesses and their agents taking part.

“We’d really appreciate your help in recruiting any of your clients who may be interested and fit the profile of the sort of business we are looking to help us initially. We’ll be saying more about this in the spring.”

Posted in Tax.