HMRC has launched six Making Tax Digital (MTD) consultation documents. The MTD Roadmap, published in December 2015, set out the government’s plans to deliver a fully digital tax service by 2020.

The six consultations set out detailed plans on how HMRC proposes to make tax digital and to simplify the tax system, covering:

• how digital record keeping and regular updates will operate
• options to simplify tax for unincorporated businesses, including how the self-employed map accounting periods onto the tax year, extending cash basis accounting and reducing reporting requirements for unincorporated businesses
• extending cash basis accounting to unincorporated property businesses, making life simpler for landlords
• how the voluntary pay as you go arrangements announced at this year’s Budget will work
• changes to tax administration to effectively underpin compliance with MTD and ensure HMRC has a fair and proportionate penalties regime
• how HMRC will make better use of the information it currently receives from third parties to provide a more transparent service for customers.

The consultations close on Monday 7 November 2016. Each consultation document contains details of how to get involved in the discussion over the next 12 weeks and how to formally respond to the consultations.

These illustrative case studies show how different elements of Making Tax Digital could impact individuals and businesses.