Brexit implications will delay HMRC projects.
HMRC has confirmed to ACCA and other professional bodies that various projects currently in operation will either stop or be paused due to BREXIT ‘challenges’.
The confirmations came after the issues were discussed at a Public Accounts Committee meeting on 30 April 2018 which examined HMRC on their progress on various matters.
The main points of interest to are:
1 – HMRC intends to delay its plans to introduce further digital services for individuals. Areas affected will be:
- Simple assessment
- Real time tax code changes
- Digitising services for inheritance tax, tax advantaged venture capital schemes and PAYE Settlement Agreements (PSAs).
So for taxpayers already in the simple assessment system there should be no changes but clearly no further taxpayers will be included in the future. HMRC continues to encourage use of Personal Tax Accounts and it will ‘revisit’ the above projects at some stage in the future.
2 – Conversely HMRC has indicated that MTD for VAT is still on track for 2019 but there will be no further MTD obligations before 2020 at the earliest.
MTD and VAT
As highlighted above, in its recent Public Accounts Committee outing and following communication, HMRC has provided some clarity around the future of Making Tax Digital (MTD) for Business. While the non-VAT parts are not mandated for business changes before 2020 at the earliest, it is clear that MTD will be mandated for VAT for those businesses with income above the VAT threshold from April 2019.
Article from ACCA In Practice