Digital Tax Regime Applies in Insolvency, UK Tax Authority Says

Companies going through the insolvency process won’t be exempt from the UK’s digital tax returns regime, the country’s tax authority said Monday.

“You’re not exempt from Making Tax Digital for Income Tax if you or your business are subject to an insolvency procedure,” His Majesty’s Revenue and Customs said in an update to its guidance.

• Under the Making Tax Digital regime, or MTD, which will begin next April, taxpayers who are self-employed—along with certain landlords—must keep digital records and use commercial software to submit quarterly income, expense information, and annual returns to HMRC.
• However, taxpayers can apply ...