HMRC appeals to accountants for MTD pilot candidates
Earlier in 2022, the number of taxpayers eligible for the current Making Tax Digital pilot was expanded. HMRC is now actively encouraging accountants and tax advisors to refer their clients to the service. What does it mean if your advisor recommends you for the pilot?
Making Tax Digital for Income Tax Self-Assessment will start to be rolled out to some businesses in 2024. Ahead of this, HMRC is running a pilot to ensure that the new system gets a thorough testing before becoming mandatory. However, take up has reportedly been poor. In its latest Agent Update, HMRC encourages authorised representatives, including accountants and tax advisors, to recommend clients for the pilot scheme. If you are approached by your advisor, what should you keep in mind? While you're not obliged to join the pilot, there are some advantages to doing so. It gives you the chance to get used to the system in the testing period, meaning there will be no penalties for getting things wrong. It's also an opportunity to help provide feedback on how things can be improved.
HMRC also confirms that the pilot will be further expanded later in 2022 to include taxpayers who need to report the following:
- Construction industry scheme deductions
- Private pension contributions relief claims
- Student loan repayments
- Additional information (SA101)
- Foreign income
- Voluntary Class 2 NI contributions
- Recipients of transferable marriage allowance
- Capital gains tax reporting
Related Topics
-
Temporary workers - your pension obligations
If you’re employing temporary workers for the summer season don’t forget that they have the same rights to join your workplace pension as permanent employees. What do you need to do?
-
Late payment interest to be cut
A cut to the Bank of England base rate means there will be another reduction in HMRC's penalty interest rates. What are the new charges and when will they take effect?
-
Making a main residence nomination
Where you have more than one home, you can choose which is the main residence for capital gains tax purposes. What factors should you consider when making the choice and when can a nomination be made?