HMRC has been running a private pilot for Making Tax Digital (MTD) for VAT since April 2018 with privately invited clients of software developers that were going through testing. Once the private pilot interface was tested thoroughly and further functionality delivered, HMRC were able to open the pilot publicly, although they have taken decisions to limit entry initially as well as delay MTD for VAT mandation for certain complex businesses. HMRC have also started writing directly to businesses to tell them about MTD.
Voluntary tax returns are to be put on a statutory footing following several recent First-tier Tribunal cases which have concluded that where the taxpayer had submitted a tax return to HMRC voluntarily, the return was not a valid return.
Following discussions between CIOT and HMRC, HMRC made some changes in July to their guidance on the application of the Distributions in a winding up targeted anti-avoidance rule (TAAR) in ITTOIA 2005 s396B.