Reward Strategy



Tax institute welcomes call for MTD delay

A Treasury Committee report calling for a delay in the implementation of the government’s Making Tax Digital (MTD) project has been welcomed by the Chartered Institute of Taxation (CIOT).

Twitter LinkedIn

The House of Commons report also called for more extensive piloting of the reforms.


CIOT president Bill Dodwell commented:


“digitalisation and quarterly reporting will be a huge change affecting millions of taxpayers. With a change this big it is more important to do it right than to do it quickly.


“So the committee is right to call for a delay in the project’s implementation. Rushing it through to deliver by April 2018 is just too short a timescale. There are hundreds of different providers of accounting software – in many cases adapted for specific industries and trades. Right now we have no idea how many of these will be ready and tested in time.


“The introduction of Making Tax Digital should be deferred for at least a year to allow a smoother and more effective transition to digital record keeping, giving businesses sufficient time to prepare for the significant administrative, technological and financial implications associated with the move to digital accounting."


Dodwell added:


“The committee is right to call for comprehensive pilots of the proposed system. There has been some limited piloting to date, but they need to be more extensive, with a range of taxpayers and tax advisers, and especially with those who naturally struggle with IT and firms with complex systems that need to be adapted. The pilots need to cover the whole reporting cycle and address behavioural issues rather than simply digital functioning. Pilots will need to build up gradually, bringing in a wider range of users.


“We are also pleased that the committee agrees with us that the threshold for Making Tax Digital and quarterly reporting should be raised substantially from the proposed £10,000. A consensus is growing that the VAT threshold of £83,000 would be a more sensible cut-off point.


“We think HMRC will need to consult thoroughly with businesses, their tax advisers and professional bodies and relevant charities in the period up to full implementation to ensure it works for HMRC, taxpayers and their representatives.”

Twitter LinkedIn
Add New Comment

You might also like

Former executive chair of HMRC to speak at the Payroll & Reward Conference

Sir Edward Troup, former executive chair of HMRC, will be a keynote speaker at the Payroll & Reward Conference 2018

Payroll: Caught between two worlds

Payroll software may have revolutionised how payroll managers calculate employee benefits, tax contributions and salaries on a weekly, fortnightly or monthly basis, but there are still a lot of manual processes in payroll, which are adding unnecessary costs to the business

Great British legislation: Statutory payments 2018/19

There are two pieces of legislation to look for when statutory payment rates are amended each year

CEST: Fit for purpose?

More than 80 percent (81) of contractors would be deterred from working through a recruitment agency, or for a business, if HMRC’s CEST Tool was the only method used to set IR35 status, research has found



Reward Strategy

Did you find our website useful?

Thank you for your input

Thank you for your feedback - an online news and information service for the UK’s payroll, reward, pensions, benefits and HR sectors. is published by Shard Financial Media Limited, registered in England & Wales as 5481132, Axe & Bottle Court, 70 Newcomen St, London, SE1 1YT. All rights reserved. Reward Strategy is committed to diversity in the workplace.
© Copyright Shard Financial Media Ltd