Making Tax Digital plans to be revealed in January 2017

23rd November 2016 | News

The Government will publish its response to the Making Tax Digital consultations – which closed earlier this month – in January 2017, as confirmed by Chancellor Philip Hammond in his inaugural Autumn Statement.

The Government’s focus on digital was further underlined today by pledging a £1bn investment to upgrade and futureproof the UK’s digital infrastructure.

Mr Hammond also confirmed to the House of Commons that innovative companies who choose to invest in fibre broadband for their business would secure 100% business rate relief, incentivising innovation among growing firms.

HM Revenue and Customs (HMRC) hopes that by digitalising the UK tax system, the regime could become much less burdensome with a reduction in red tape for small business owners.

HMRC believes the benefits of the Making Tax Digital programme include:

Jane Ellison MP, Financial Secretary to the Treasury, had previously said: “We are committed to a transparent and accessible tax system fit for the digital age, and Making Tax Digital is at the heart of these plans.

“This new system will make the UK’s tax administration more efficient and straightforward, and will offer businesses greater clarity when it comes to paying their tax bills.

“By replacing the annual tax return with simple, digital updates, businesses will be able to concentrate on putting people and profit, not paperwork, first.”