Businesses wanted for HMRC’s Making Tax Digital pilot

Here’s an overview of the main pros and cons of joining the Making Tax Digital for VAT (MTD for VAT) pilot, which starts in April 2018. Details of how to register your interest in participating are at the bottom of the article. For further information, visit our detailed info page on the MTD plans.

HMRC will give a select number of businesses the opportunity to submit their VAT returns via the new system. During the pilot, HMRC will monitor the process to iron out any bugs and ensure the system is working as expected. Participants will also be able to provide feedback on their experience of using the system. Once everything is in place, HMRC plans to roll out the system more widely.

Benefits

• You’ll be ahead of your competitors when the system is rolled out more widely, as you’ll already be familiar with it.
• You’ll be kept fully up to date with the latest developments in VAT reporting.
• You can leave the Making Tax Digital pilot at any time if you find you no longer want to take part.

Disadvantages

• You may not want your clients to take part at the moment as?the system hasn’t been properly tested.
• The new system will likely contain a lot of bugs that need fixing. It could take you longer to file a VAT return as a result. However, HMRC says it will address any ‘technical hiccups’ swiftly.

Still interested? Get involved in the Making Tax Digital pilot!

The first step is to contact HMRC at?makingtaxdigital.mailbox@hmrc.gsi.gov.uk. HMRC will then ask you to complete a short survey. This will help establish key features about your firm in order to manage the trial period.

To conclude, here’s a statement from a spokesperson at HMRC:??We have been working with stakeholders throughout the development of MTD and a number of professional bodies have approached their members to encourage them to participate in the live pilot, starting in the Spring.?This pilot will be widened over the coming months as further functionality is added.?