The ATT and CIOT are calling on HMRC to publish ‘detailed practical guidance’ on taxpayer obligations under making tax digital for income tax self-assessment, and to ‘objectively review’ the timetable for implementation.
Responding to HMRC’s consultation Tertiary legislation for making tax digital for income tax, the CIOT cautions that, although the draft notices clarify how some parts of the MTD for ITSA regime will work, such as the information that should be provided when reporting income and expenses to HMRC, ‘a number of essential, unanswered questions’ remain on how reporting will work in practice. These include:
the level of detail taxpayers will be required to report when recording transactions – in essence, making it clear what the digital record is actually for;
how digital record keeping and reporting will work in cases involving joint property owners and use of either the cash or accruals basis, given an election can be made after the end of the tax year and different bases can be used for different taxes; and
how digital links must be used to capture information transferred between software programs.
The ATT and CIOT are calling on HMRC to publish ‘detailed practical guidance’ on taxpayer obligations under making tax digital for income tax self-assessment, and to ‘objectively review’ the timetable for implementation.
Responding to HMRC’s consultation Tertiary legislation for making tax digital for income tax, the CIOT cautions that, although the draft notices clarify how some parts of the MTD for ITSA regime will work, such as the information that should be provided when reporting income and expenses to HMRC, ‘a number of essential, unanswered questions’ remain on how reporting will work in practice. These include:
the level of detail taxpayers will be required to report when recording transactions – in essence, making it clear what the digital record is actually for;
how digital record keeping and reporting will work in cases involving joint property owners and use of either the cash or accruals basis, given an election can be made after the end of the tax year and different bases can be used for different taxes; and
how digital links must be used to capture information transferred between software programs.
