Thursday, 12 January 2017

HMRC Tackling MTD In The Wrong Order



Andrew Jackson, chair of the UK200Group tax panel, says the law governing relationships and taxpayer obligations should be hammered out before the IT infrastructure is designed for Making Tax Digital (MTD).

He is quoted by AccountingWeb:
"It is a good thing that it [MTD] will happen and there are an awful lot of very good things that could be done there, but they need to be in the right order. 

They need to be thought-out and we need time to bed it all in. The problem is, hardly a day goes by without yet another example of one part of HMRC not talking to another. It really doesn’t give you confidence that it will be ready in just over a year’s time. 

That timescale is the big problem they’ve got.

They probably recognise that thinking it through would be nice, but they haven’t got time to think about what they’re doing before they do it because they’ve got to get it done by next April. They’ve got to leap before they look.
According to Jackson, HMRC is proposing to tackle MTD in the wrong order.
"Get a platform in place that’s optional to use, get that working, when we know that works make it mandatory and start bringing in the other stages.

But until you’ve got the operating system installed you can’t be forcing people to use the applications."
The question is, will HMRC listen?


Tax does have to be taxing.

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1 comment:

  1. Er, when did HMRC ever do anything in the right order? Mr Jackson's got it right, MTD if done right does indeed have many advantages, but HMRC are an illogical & unresponsive organisation so will make a disaster of it.

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