Further to our blog in April, http://ryecroftglenton.com/2018/04/26/hmrc-projects-at-risk-from-brexit-pressure-could-mtd-be-a-casualty/, HMRC has now confirmed MTD for Individuals will be delayed because of Brexit redeployments.
HMRC remains adamant the MTD for VAT programme will remain on track and on-timetable, with MTD for VAT going ahead in 2019 for businesses with turnover above the registration threshold (currently £85,000, but there is speculation this figure could be reduced).
HMRC’s statement also confirms that they will not mandate any further MTD for Business changes before 2020 at the earliest.
To release capacity for Brexit work, HMRC announced it will delay plans to introduce further digital services for individuals… “This means halting progress on simple assessment (which was intended to take two million taxpayers out of self assessment) and real time tax code changes,” said the announcement… “The MTD for Individuals programme has made significant progress here, so we’ve laid foundations that will enable us to return to this in the future” but according to the statement, additional services will now be added only where they reduce phone and post contact or deliver significant savings.
It’s clear HMRC is under immense pressure and must divert resources to where they are most needed (Brexit). Assuming MTD for VAT does go ahead, what level of support will the taxpaying public receive from HMRC? The solutions we will implement for our clients will put them in a win-win position; MTD compliant whilst at the same time giving better real time accounting information to help with key business decisions.