Is a HMRC Business Tax Account compulsory for businesses within MTD?

by Robert Leggett

Many businesses do not access, and may not even be registered for their HMRC Business Tax Account (‘BTA’), as most of information is being dealt with or sought from their tax agents.

Currently, an agent can be authorised by completing and producing a signed Form 64-8, or when agents request an authorisation code online which is issued by HMRC and posted to the business before it is then passed to the agent. This however did not require the business to access their Business Tax Account.

The Institute of Chartered Accountants in England & Wales (ICAEW) has been made aware that for a business within MTD, specific transactions which the client will have to complete will require access to its BTA.

There have not been any details released by HMRC yet, however some of the reasons why businesses will need to access their BTA include the following: –

  • To provide HMRC with a business email address;
  • To authorise and manage business agents; 
  • To notify HMRC of certain changes of circumstances or alternatively confirm these changes.

It is suggested that the transactions available only through the business BTA will be limited to situations where HMRC requires a direct confirmation from the business and an alternative process will be established for those business that are digitally excluded.

The first step is therefore to determine whether the business is registered for online government services.

If not then it may be time to register your business (as an organisation) within the Government Getaway.

For more information on whether your business falls within the MTD limits and with help setting up your BTA, please contact your normal Ensors contact or Robert Leggett.

Author

Robert Leggett

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