What we know
The General Data Protection Regulation (GDPR) will replace the Data Protection Act. Brexit has no impact. The Information Commissioner has said “there may still be questions about how the GDPR would work on the UK leaving the EU but this should not distract from the important task of compliance with GDPR”. This is much more than an IT issue; the GDPR references the need for “appropriate technical and organisational measures” several times.
Making Tax Digital (MTD) is the HMRC plan to have a fully digital tax system where:
- bureaucratic form-filling is eradicated — taxpayers should never have to tell HMRC information it already knows
- unnecessary time delays are eliminated — the tax system operates much more closely to ‘real time’, keeping everyone up to date and removing the risk of missed deadlines, unnecessary penalties, debts arising and errors in the system being carried forward from one year to the next
- taxpayers have access to digital accounts — with the information HMRC needs automatically uploaded, bringing an end to the tax return
When will it happen
GDPR starts to be enforced from May 2018. If you are not ready for GDPR fines can be up to €20m or 4% of global turnover (whichever is the higher).
MTD trials start in the first half of 2017. Full implementation is planned for 2020.
What you need to do
Start preparing for GDPR. It is going to happen. Do a gap analysis of what needs to change; you may find that many things are already in place or just need some tweaks. Look on this as an opportunity to simplify processes, improve trust and transparency with clients and remove redundant personal data.
If you are part of a MTD trial you need to make digital tax returns. If you aren’t part of a trial no action is required for now, but you could give feedback on the proposed changes to your MP. Wait for updates.
Where do I go for more information
We can help you prepare for the GDPR.
t: +44 (0)7941 188462
Contact your Accountant about MTD.