HMRC praised for use of public consultations on Making Tax Digital programme

Written by Beckie Smith on 14 November 2018 in News
News

Lords committee commends tax agency for process used to develop and roll out digitisation project

Credit: PA

A group of peers tasked with scrutinising draft finance legislation has praised the way HM Revenue and Customs used public consultation to develop its Making Tax Digital for VAT initiative.

In a letter to chancellor Philip Hammond, Lord Michael Forsyth, chair of the Lords Finance Bill Sub-Committee, welcomed HMRC’s publications of the penalties and interest provisions for the reform to digitise tax reporting and record-keeping.

Forsyth’s letter, which set out the sub-committee’s interim recommendations on the legislation, noted that the Making Tax Digital penalties and interest provisions would not be included in the finance bill. However, he said the peers commended the three-stage consultation process HMRC had used to develop the provisions.


Related content


“Several witnesses [to the inquiry] told the sub-committee they valued this process and the time and effort HMRC put into it. We have no doubt that it has contributed to the broad support that this new framework clearly commands,” he wrote.

Forsyth noted that witnesses had raised some concerns about the reform, which he said the sub-committee would address in its upcoming report.

The rollout of the programme has been delayed from initial plans, with businesses not mandated to begin using the Making Tax Digital for Business system until April 2019, and then this will only be to meet their VAT obligations. This is compared to an original rollout across business taxation intended to start with income tax in 2018, followed by VAT and corporation tax in consecutive years. Making Tax Digital will not be mandated for taxes other than VAT until at least April 2020, following concerns from small businesses.

In April 2017 Hammond said he would delay the start date of the digital tax reforms for the smallest businesses, after businesses and the Treasury Select Committee raised concerns about the speed at which they were going ahead.
 

About the author

Beckie Smith is a reporter for PublicTechnology sister publication Civil Service World. She tweets as @Beckie__Smith.

Share this page

Tags

Categories

CONTRIBUTIONS FROM READERS

Please login to post a comment or register for a free account.

Related Articles

Related Sponsored Articles

Digital Transformation: Connecting and protecting with perfect predictability
10 September 2019

How can you stay ahead in the fast-paced world of digital technology? BT describes how it's a matter of focus... 

How to stay ahead of a changing threat landscape
3 September 2019

The security threat landscape is confusing and changing rapidly – there’s so much out there, how do you understand where the true risks are? BT offers insight from their own experience

The cyber security skills challenge: Hiring for tomorrow
27 August 2019

Organisations must alter their approach to cyber security recruitment in order to combat the global shortage of security professionals, writes BT 

Augmented Intelligence: digital transformation with humans in the loop
20 August 2019

BT reviews an event looking at how man and machine are working together to drive digital transformation