From 1st April, when Making Tax Digital launches, software suppliers must ensure their products capture and transmit all available transaction monitoring metadata electronically from taxpayers at the same time as the taxation information it relates to. This information will be transmitted to HMRC systems, where the information will be stored securely. Failure to comply with this legal obligation risks a penalty and having access to HMRC systems removed.
HMRC have stated that software providers “must help us to protect our users’ confidential data by sending us particular types of user audit data which we will record. Our APIs provide HTTP headers that you can use to pass this audit data to us. These headers can influence the processing of the API call, or support our prosecutions for tax or duty fraud. Supplying header information for all our APIs will become mandatory – so we recommend designing it into your applications now.”
HMRC yesterday announced that new legislation has been agreed in Parliament and will come into force on 19th March. This legislation requires developers to collect and supply fraud header metadata. For Making Tax Digital, this means that Fraud Prevention headers will become compulsory and must be in place by 1st April. The good news is we have already designed Fraud Prevention headers in to our MTD solution. Another reason to choose our solution – we guarantee you will be fully compliant from the outset.