Taxes Management Act 1970 section 12C

Digital reporting and record-keeping

Section 12C introduces the schedule that establishes the framework for digital reporting and record-keeping requirements, commonly known as Making Tax Digital.

• This section was inserted by Finance (No. 2) Act 2017 to provide the legal basis for Making Tax Digital obligations.
• The section gives legal effect to Schedule A1 of the Taxes Management Act 1970, which contains the detailed rules for digital reporting and record-keeping.
• The practical requirements — including who must comply, what records must be kept digitally, and how information must be reported — are all set out in that schedule rather than in this section itself.
• Section 12C is essentially a gateway provision: its sole purpose is to activate the detailed digital reporting and record-keeping rules contained in Schedule A1.