HMRCs plans for MTD to roll out to all business are to be slowed in order to allow HMRC more time to work with developers so that it meets the requirements of more businesses.


HMRC have had to make some tough choices about how resources are used in terms of delivering on Brexit responsibilities. Their digital delivery team and business analysis team are being redeployed to focus on ensuring that a customs solution will be in place, should it be required when the UK leaves the EU.


Work is slowing on the IT delivery of other elements of MTD relating to Income and Corporation Tax. However, delivery of MTD for VAT is continuing as planned. MTD for VAT registered businesses with a taxable turnover over the VAT threshold will still be required to use MTD services from April 2019. The Income Tax pilot will also not be affected for all those already involved.  


The inclusion of business with complex requirements is to be delayed. HMRC has stressed that ‘this does not indicate any expected outcome, but is due to the level of work required to deliver any outcome’.