Making Tax Digital (a bit)

Trusts Discussion
1

HMRC has published details of what returns must be submitted on paper as software cannot cope.Self Assessment technical specifications (2022) for individual returns - GOV.UK

"1. Most developers will have taken the following items into account in their software. If a customer does find though that they cannot file online for one of these reasons, a claim for reasonable excuse should accompany the paper return.
And "Where a personal return cannot be filed online for a reason listed below, provided that a paper return is delivered on or before 31 January following the end of the tax year to which the return relates, HMRC will accept that the taxpayer had a reasonable excuse for failing to file a paper return by the normal 31 October deadline. A reasonable excuse claim should accompany the paper return. "

  1. Any paper return submitted must conform to the normal rules for paper returns even if it is a computer—generated paper return e.g., it must hold a valid signature.

  2. Where an HMRC recommended workaround causes an online return to be submitted with an entry that is not strictly correct, HMRC will not take action on that particular entry for that reason alone provided that the inaccuracy is in accordance with the workaround and purely to facilitate online filing."

HMRC are giving away free reasonable excuse claims with certain select returns. Bring on MTD ITSA!

Jack Harper

2

“The Administrative Burdens Advisory Board (ABAB) is an independent board comprising members from a range of business backgrounds and professions who represent the small business community.”
Administrative Burdens Advisory Board (ABAB) - GOV.UK

“With their vast business experience ABAB members are well placed to ‘tell it like it is’ when it comes to delivering a simpler and easier tax system for small businesses.”

In their Annual Rport of November 2022 they say about MTD ITSA “Given the issues mentioned here, all of which have arisen since our last report, the compliance costs and burdens associated with MTD ITSA need to be reassessed, especially insofar as they impact on the very smallest businesses. More importantly, we think the whole MTD ITSA project needs to be delayed by at least a year to allow these issues to be properly addressed and resolved before implementation commences.”

Jack Harper