Making Tax Digital (MTD) – Focus On Success  

Making Tax Digital (MTD) is an ambitious initiative to transform the UK tax system to be fit for the digital age and achieve their effectiveness and efficiency goals. It is vital to the UK Government and HMRC that it is successfully rolled out and Business Software Developers, including BASDA members, have an important role to play, as per HMRC’s API strategy. This relies upon software houses to develop, test, upgrade their solutions and educate their customers so that they will be ready to meet their obligations and ensure MTD is a success.

BASDA has a history of successful collaboration with members on major industry challenges as “One Voice” including:

  • Ongoing VAT and tax changes
  • The introduction of the Euro
  • Y2K compliance
  • Electronic business and online document exchange
  • The introduction of the Construction Industry Tax Scheme (CIS)
  • RTI – the real time interface for PAYE

BASDA members have an important role to play as per HMRC’s API strategy.  Become involved now with the BASDA MTD campaign to help your business and customers alike.

“Without BASDA’s focus and contribution, work and investment of their members, MTD would not happen. Collectively, you are essential to every accountancy firm and their ability to work, by creating the digital link between HMRC, taxpayers and businesses.”

Yvette Nunn

Director, Berkeley Associates and member of HMRC's senior stakeholders forums

MTD – Vital to get it Right

HMRC’s stated aim is to “become one of the most digitally advanced tax administrations in the world”. MTD is a key component in this strategy. The ambition is to modernise the tax system via the digital keeping, collecting and transferring of tax-related data so that it is easier for individuals and businesses (including micro-businesses, self-employed and landlords) to get their tax calculations and payments correct.

BASDA, as the collective voice for industry,  can ensure that MTD has the best chance of being rolled out successfully and on schedule.  We can do this through:

  • Access to BASDA’s extensive experience of collaboration
  • Sharing of information gained by the group of business software developers so that product management and development resources can be used most efficiently and cost effectively
  • Discussion between developers on approaches to MTD development and testing
  • Collective feedback and questions on MTD from the group to HMRC – rather than from individual organisations
  • Representation through BASDA with HMRC at regular meetings and updates

Timelines

MTD is an extensive project with ambitious milestones.

2017

MTD goal was to deliver ‘a transformed tax system’ by 2020, with a timetable of steps and deliverables for business and individuals along the way.

July 2017

After a number of concerns about the pace and scale of change were raised regarding the roll out of MTD for business, it was revised to give organisations more time to adapt and implement the changes.

May 2018

Software providers have only 3 quarterly VAT return opportunities to get MTD testing right before MTD begins.

April 2019

Businesses above the VAT threshold will be mandated to keep their records digitally.

July 2019

Software providers have only 3 quarterly VAT return opportunities to get MTD testing right before MTD begins.

Collaborate with BASDA to make MTD a success

Join the BASDA discussion and collaboration with business software developers to share information on MTD topics such as testing, deadlines and deliverables including:

  • The status of MTD testing and success of pilot submissions
  • Testing approaches
  • Submissions coming from core applications or via add-on “modules”
  • Error Handling
  • Working with HMRC Account Managers
  • Handling customers submitting directly via our software vs those submitting via a 3rd party

Launched: MTD Developer Forum

MTD is the latest example where BASDA can bring software providers together to benefit everyone. BASDA has set up an online MTD community forum.  This is open to BASDA members and others by invitation. In this private online moderated forum BASDA seeks to stimulate discussion and information sharing on MTD topics such as testing, deadlines and deliverables.  With a strong track record in bringing business software providers together to collaborate, BASDA’s knowledge and experience through this forum will provide critical input and direction in particular as the deadline for MTD approaches.

The purpose of the BASDA Developer Forum include:

  • Sharing best practices about the MTD pilot
  • Discussing technical issues and practical resolutions
  • Establishing a BASDA developer community to inform, educate and inspire
  • Enable a co-ordinated medium for HMRC to respond to emerging issues
  • Creating an informal, safe, anonymous environment to ask those inane questions
  • Supplementing the HMRC forum

To join BASDA’s MTD forum, contact the Moderator, Lynne Wallis (admin@basda.org)

Want To Join BASDA?

Find out more about the benefits of BASDA and how to join.