A recent publication has quietly confirmed that companies won’t be mandated into Making Tax Digital (MTD). What’s happened and what's the new plan?
The impressive-sounding “transformation roadmap” was published on 21 July. This HMRC document details its objectives and within the pages is the confirmation that MTD for corporation tax has been dropped. Given the expected additional costs and administrative burden for small businesses this will undoubtedly be a very welcome change.
HMRC still intends to modernise services for corporation tax, mainly based around renewing its internal systems. It is “developing an approach to the future administration of CT that is suited to the varying needs of the diverse CT population.” We don’t yet know what this will entail but HMRC has confirmed it will work with stakeholders to identify changes that will provide the best outcomes. It is also “committed to consulting and providing early clarity and assurance on both the design and timing of changes.”
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