In a Lords Finance Bill Sub Committee meeting on Monday, the group of UK accountancy institutes were all in agreement on the notion that basis period reform needs to be addressed before the government introduces the next stage of Making Tax Digital for income tax. The witnesses at the hearing stated that ‘getting the order right’ for the introduction was vital to the success of the reforms. 

At the meeting, Emma Rawson, technical officer at the Association of Taxation Technicians (ATT), highlighted that basis period reform would help simplify the transition to Making Tax Digital as the basis period is how you calculate the tax whilst MTD is the reporting of it.