ICAEW.com works better with JavaScript enabled.

TAX NEWS

ICAEW responds to latest MTD ITSA consultation

Article

Published: 16 Jan 2024 Update History

Amendments to the regulations and notices for making tax digital income tax self assessment (MTD ITSA) need to be set in the context of wider concerns about the programme.

ICAEW’s Tax Faculty has responded to HMRC’s consultation on draft regulations for MTD ITSA and associated notices in ICAEW REP 08/24

As the current MTD ITSA regulations provide for a start date of 6 April 2024, it is essential that new regulations are laid before that date. As well as changing the start date, the amendments will incorporate changes announced in December 2022 and at Autumn Statement 2023 following the small business review. The associated notices have not previously been published. 

ICAEW’s response makes several important technical points on the regulations including: 

  • the lack of clarity on requirements for maintaining digital records, including the level of detail required;
  • what the requirement for digital links within functional compatible software will mean in practice;
  • changing the submission deadline for MTD ITSA quarterly updates from the fifth of the month to the seventh of the month to align with the VAT deadline. ICAEW understands that such a change is being considered, but it is not reflected in the draft amendments; and 
  • the need for a quick and easy way to bring taxpayers' affairs up to date when they have fallen behind.  

It is important not to lose sight of the wider concerns about the programme which include: 

  • the administration burden and complexity that arises from the quarterly updates requirement;
  • unresolved design and implementation issues and whether a meaningful pilot will be possible in 2025/26 in advance of the April 2026 start date; 
  • HMRC’s capacity to provide the customer support that will be needed;
  • whether a sufficient range of suitable software products (including some that meet the government’s commitment to free products) will be available; and 
  • how the late submission penalty regime will apply in practice. 
The Tax Faculty

ICAEW's Tax Faculty is recognised internationally as a leading authority and source of expertise on taxation. The faculty is the voice of tax for ICAEW, responsible for all submissions to the tax authorities. Join the Faculty for expert guidance and support enabling you to provide the best advice on tax to your clients or business.

More support on tax

ICAEW's Tax Faculty provides technical guidance and practical support on tax practice and policy. You can sign up to the Tax Faculty's free enewsletter (TAXwire) which provides weekly updates on developments in tax.

Sign up for TAXwireJoin the Tax Faculty

More from the Tax Faculty

Latest news
Making tax digital image
TAXwire

Stay up to date with the latest developments in tax by signing up to the Tax Faculty's weekly e-newsletter

Practical guidance
Cover
TAXline

Comprehensive support for Tax practitioners each month from the Tax Faculty and expert contributors.

Technical support
Tax Faculty image
Webinars

Expert advice from the Tax Faculty's technical managers on all the developments in tax policy and practice.

Open AddCPD icon

Add Verified CPD Activity

Introducing AddCPD, a new way to record your CPD activities!

Log in to start using the AddCPD tool. Available only to ICAEW members.

Add this page to your CPD activity

Step 1 of 3
Download recorded
Download not recorded

Please download the related document if you wish to add this activity to your record

What time are you claiming for this activity?
Mandatory fields

Add this page to your CPD activity

Step 2 of 3
Mandatory field

Add activity to my record

Step 3 of 3
Mandatory field

Activity added

An error has occurred
Please try again

If the problem persists please contact our helpline on +44 (0)1908 248 250