HMRC has ‘failed to support’ small businesses in transition to Making Tax Digital for VAT

Peers on the House of Lords Economic Affairs Select Committee have urged HMRC to delay the introduction of Making Tax Digital for VAT by at least one year.

Despite already making some concessions, HMRC has failed to support small businesses in their transition to Making Tax Digital for VAT and would delay the introduction of the new system by at least one year.

That’s the recommendation being made by Peers on the House of Lords Economics Affairs Select Committee, which in a damning report claims that HMRC has also not made any attempt to calculate the impact of introducing Making Tax Digital for VAT on the smallest businesses.

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HMRC to enhance self assessment pre-population

From 6 April 2019, HMRC’s phase two pre-population release will include:

  • Data available earlier in the tax year and maybe for the current year (currently unavailable until September after PAYE reconciliation has completed)
  • Pensions data by provider, not aggregated
  • Improved data quality (for example, pensions are sometimes reported as employments)
  • More data, such as state pensions and bank interest