Last updated: 25 July 2019
What is MTD?
Under MTD, HMRC aims to join up its various online systems to create one partially populated account for each taxpayer and impose new quarterly filing and ultimately, payment regimes with annual reconciliations.
With effect from April 2019, most businesses trading over the VAT threshold are now obliged to file VAT Returns online. Businesses affected by these new obligations should ensure that they are compliant with them as a matter of urgency.
The annual tax return lives on… for now
Currently, HMRC do not have an anticipated launch date to bring the Self-Assessment tax return into MTD. However, MTD still appears to be the current direction of travel and we continue to monitor new developments closely.
Some measures are already in place. HMRC has removed the need for certain groups of taxpayers to submit annual tax returns, replacing them with “simple assessments” based on information HMRC already holds. However, this information can often be inaccurate and, with a short window to challenge these assessments, it is vital to check these simple assessments carefully.