How do I know if I am registered for making tax digital?

Sign into your HMRC online services account with your Government Gateway user ID and password. Click “View your tax account” on the business tax account page and navigate to the “Self Assessment” section. Once registered, you should receive an email from HMRC within 72 hours.

Will MTD be delayed again?

It’s impossible to say. As HMRC has already delayed Making Tax Digital once, it is reasonable to think it could happen again. For the latest information, refer to the HMRC website.

What should businesses and taxpayers do during the delay period?

During the Making Tax Digital delay period, taxpayers and small businesses should use the opportunity to adapt their existing business practices to comply with upcoming MTD for ITSA requirements. This includes using MTD-compliant software to maintain financial records and prepare reports to submit to HMRC.

Is any support available for businesses and taxpayers to help them prepare for Making Tax Digital?

Yes. On the HMRC website, you’ll find documentation and guidance to help businesses understand MTD compliance requirements. This includes a number of webinars and videos. You can also request assistance from the relevant HMRC helpline. Helpful resources here at FreshBooks may answer questions you have as well.

Will there be any changes to the penalties and fines for non-compliance with MTD due to the delay?

Yes, while existing penalty systems will remain in place for incorrect calculations and payments, there are changes relating to late submissions. The new points-based system triggers a £200 fine after an individual has accumulated a certain number of points. Points are levied when you submit reports late to HMRC and they expire after two years.