Last week saw an interesting few days. We had the vote on triggering Article 50 in the Commons and a day later the publication of the Brexit White Paper. Getting in just before the filing deadline of 31 January, HMRC’s response to the six consultations on Making Tax Digital landed with a thud. Jonathan Reilly, head of tax at Grant Thornton reacts to the digitisation plans
And rather like Brexit meaning Brexit, Making Tax Digital means Making Tax Digital. No wholesale concessions and certainly no delay in the process of moving the UK’s tax regime towards a digital platform and interface, with the first and main substantive changes still on track for April 2018 for the majority of taxpayers.
There was some sensible flexing of approach by HMRC in their response – for example the ability to use Excel spreadsheets to support digital compliance was a response to the concerns of many. Spreadsheets will have to meet the requirements of Making Tax Digital – probably combining spread sheets with Making Tax Digital software.
On the other hand, there were clarifications that many in the adviser community welcomed, which in reality represent a risk of continued heads in sand. Let’s think about one such clarification. HMRC said that there is no requirement for businesses to make and store invoices and receipts digitally. But at the same time confirmed that there is a requirement to keep digital records.
