ICAEW urges HMRC to rethink MTD for corporation tax
11th March 2021
The Institute of Chartered Accountants in England and Wales (ICAEW) has urged HMRC to reconsider its requirements for firms to report quarterly under Making Tax Digital for corporation tax.
Commenting on HMRC’s consultation on expanding the MTD scheme to corporation tax from 2026 or later, the ICAEW suggested that HMRC should rethink reporting requirements, at the very least for firms below the VAT registration threshold.
The organisation added that requirements should also be reconsidered for businesses that require a senior accounting officer.
The ICAEW argues that the quarterly reports, consisting of cash in and out transactions, would “tell HMRC very little about the true accounting or tax results of the company for the quarter concerned”.
The ICAEW added:
“The additional burden placed on companies in providing quarterly reports is not justified and should not be introduced until digital record keeping has become established and the software available is shown to work efficiently for companies and HMRC.”
Read the ICAEW’s full response here.
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