How will Making Tax Digital transform the tax profession?
March 21st, 2016
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The tax profession is currently anticipating the most fundamental change to tax administration since self-assessment, with proposals announced under the banner of Making Tax Digital (MTD) as detailed in the Government's consultation documents.
Under these proposals, from 2018 the tax system will become increasingly digital and most businesses will need to use software or apps to keep their business records and update HMRC on a quarterly basis.
Filmed in November, this Tolley industry roundtable brings together a panel of experts from the tax profession to discuss the proposals set out in the documents, and its impact on the future of tax.
Key questions tackled during the debate, included:
- Is MTD broadly the right way to go to bring the tax system into the digital age?
- What is the general quality of record keeping by businesses and is it realistic to mandate that the vast majority of businesses keep their records in a digital format? And what are the potential benefits of keeping records in a digital format?
- What are the key things that HMRC will need to put in place to ensure the journey to digital record keeping is as smooth as possible.
- What will the future role of agents be under MTD?
- How much confidence is there in the current timeline being met, and what will be implications for the credibility of the project if the deadline is relaxed, or mandation is diluted?
- Do the proposals in the consultation documents "Simplifying tax for unincorporated businesses" and "Simplified cash basis for unincorporated property businesses" go far enough?