The level of response to HMRC’s Making Tax Digital consultation was unprecedented, with over 3,000 submissions from individuals, firms and representative bodies. Even the House of Commons Treasury Committee joined in. The responses were remarkably consistent and while HMRC has clearly taken on board some of the concerns expressed, some critical issues still remain to be addressed.

On late submission penalties, there is to be a soft landing period giving at least 12 months (I suspect it will need to be longer) for people to become familiar with the new system before penalties are imposed. This is a welcome and pragmatic move, learning from experience gained with real time information (RTI). There is to be a further consultation this spring.