Making Tax Digital For Individuals Plans Grind To a Halt Due To Brexit

Which plans are on hold?

HMRC has confirmed that it will pause work on new digital services that impact a fewer number of customers. It highlighted that additional services will only be added where they reduce phone and post contact or deliver significant savings.

Digital services regarding the payment of inheritance tax, applying for tax-advantaged venture capital schemes and PAYE settlement agreements will be paused. Progress on simple assessment and real-time tax code changes has also been halted.

Which ideas have been scrapped?

HMRC no longer plans to implement a new service for online tax credits claims, as no new claims will be made after January 2019. It will instead focus on improving the existing Tax-Free Childcare system.

What is HMRC prioritising?

The plan is still to become the world’s most digitally-advanced tax authority. It has confirmed that the MTD for individuals programme has made significant progress and the foundations are there that will enable it to return to the plans in the future. During this time it will instead focus on various Brexit-related initiatives, from changes to tax credits through to a number of VAT projects. It will continue to deliver all of the additional work it was given in Budgets and autumn statements.

Is there any impact on MTD for businesses?

No, MTD for business will continue as planned (VAT mandated from 2019 and no other MTD for business changes before 2020).