HMRC re-evaluates its digital priorities
Jun 07, 2018
Last month HMRC announced that the work required to upgrade its customs systems in preparation for Brexit is putting additional demands on its resources. To make room for these extra requirements, the Treasury has set out revised digital priorities for its current transformation projects, many of which will now be bumped down the list.
The main projects affected by the delay are the plans to introduce further digital services for individual taxpayers. Progress has currently been stalled for:
- Simple Assessment for taxpayers (as opposed to self assessment). If you’re already in Simple Assessment then you’ll remain there, but HMRC won’t be bringing in any further taxpayers for the moment.
- Real time tax code changes
- Digitising services for inheritance tax, tax advantaged venture capital schemes and PAYE Settlement Agreements (PSAs).
- An online service for new tax credit claims – HMRC are going to focus on improving the Tax Free Childcare system instead of tax credit claims.
HMRC is continuing to encourage all individuals to use their Personal Tax Accounts, and despite all these delays it has made assurances that the programme of digital services for individuals will be revisited in the future.
You may, or may not, be delighted to hear that the introduction of VAT reporting under Making Tax Digital (MTD) is still scheduled to commence in April 2019, for those VAT registered businesses with a turnover over the £85,000 VAT registration threshold.
HMRC has confirmed that no further MTD changes for other areas such as Income Tax and Corporation Tax will be brought in for businesses before 2020 at the earliest.
The Treasury’s plan to transfer business taxes from its current range of systems into a single digital account for every business customer remains an important goal of the department. This will still be going ahead, although will now take place at a slower pace.
If you have any queries about HMRC’s digital priorities, please do get in touch.