Making Tax Digital (MTD) Pilot Phases & Timeline
Explore the detailed insights on Making Tax Digital (MTD) pilot phases, timeline, and anticipated coverage for the upcoming tax years. Learn about the key aspects, requirements, and stages within the MTD program to prepare for a seamless transition. Stay informed on the latest developments and updates to comply with HMRC regulations efficiently.
Download Presentation
Please find below an Image/Link to download the presentation.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author. If you encounter any issues during the download, it is possible that the publisher has removed the file from their server.
You are allowed to download the files provided on this website for personal or commercial use, subject to the condition that they are used lawfully. All files are the property of their respective owners.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author.
E N D
Presentation Transcript
MTD is coming (Definitely this time) Kelly Coombes Thomson Reuters
Introduction Worked in tax for 9 years 7 years in Practice 2 years for Thomson Reuters (Digita/Onvio) Tax Product Manager ensuring Thomson Reuters personal tax products are compliant and meet user needs Kelly Coombes CTA, ATT Tax Product Manager @ Thomson Reuters
Agenda Re-cap Reminder of timeline Pilot content Next steps
MTD Re-cap What Digital recordkeeping of mandated data (trading & rental income & expenses) Submission (categorised totalled) mandated data required quarterly Quarters based on tax year (5 July, 5 October, 5 January, 5 April), or Elect month end (30 June, 30 September, 31 December, 31 March) Non-mandated data annually, and sign off tax year Who Individuals mandated income/turnover over 10,000 Partnerships (individual partners only) mandated income/turnover over 10,000 Other aspects Personal Tax Account Remove the need for self-assessment tax return
MTD Timeline Pilot Phase I Go Live Mandated Corporates (TBC) Pilot Phase II April 2024 April 2025 April 2022 April 2023 April 2026 Go Live Mandated Individuals Phase I Simple mandated income Building throughout year Key focus end of year process Phase II Testing simple at volume Go Live Mandated Partnerships Plus testing niche scenarios
MTD Stages within pilot Pilot Phase I Pilot Phase II April 2023 April 2022 Will be split into stages to ensure a smooth onboarding Stage 1 - Private Intensive handholding Stage 2 - Controlled Gradual increase Stage 3 Full Pilot Replicate go live
HMRC Pilot Anticipated coverage 2022/23 Tax Year reporting of; Sole trades (inc. multiple sources) CIS Deductions Landlords (UK & Foreign) UK Interest & Dividends Gift Aid Employment Income Pension Contributions Pension Income Student Loans Foreign Income In Progress (or available now in test environment) Coding out underpayments SA Repayments etc Corrections To Follow (by mandation, date not known) Amendments Residence & Remittance Trust Income Partnership Income Lloyds Minister of Religion 7
MTD Essential tasks 1. Identify and categorise clients 2. Client engagement and communication 3. Choose technology solutions
Identify and categorise clients Break clients into three categories 1. 2. 3. VAT Registered traders already doing digital recordkeeping Non-VAT Registered traders Landlords Assess client ability and needs Which software is suitable Will they require bookkeeping service Define your service packages 1. 2. 3. Client collects and file Client collects data, you file Client sends all data, you log, review and file
Client engagement and communication Website Social Media Dedicated MTD page Factsheets and FAQ Short videos Use social media to highlight key points Pose questions that you can answer on your website Encourage clients and prospects to contact you Position yourself as MTD ready Client Communications Series of communications that can be sent regularly Be clear on the impact to them Cover requirements, their responsibilities, your responsibilities, how you can help Regular touch points Discuss in client meetings, telephone calls etc. Have printouts or leaflets you can hand out Add details or hooks in your email signatures
Choose technology solutions Choose the right technology Use client categories and service proposition, map tech requirements Look beyond recordkeeping (invoicing, bank feeds, etc.) Identify small selection of products Simple transaction recorders More sophisticated data collection tools Simple bookkeeping Approach who, what, when, how? Map out recommended solution for each client Set time frame for contacting clients Agree timeframe with client in which to move to compliant software or service
Thank You Kelly Coombes CTA, ATT Tax Product Manager @ Thomson Reuters
