A Further Update on Making Tax Digital (MTD)
Because of the forthcoming General Election, the Government have been forced to cut down the size of the Finance Act (to a mere 156 pages!) in order to get essential tax provisions into law before Parliament is dissolved.
One of the omissions is MTD, although it is widely expected that this will be reintroduced after the election.
However, there has been more criticism of the proposals. The Office of Budget Responsibility has said that HMRC’s estimates of the improved tax take from MTC were highly uncertain and the House of Lords Economic Affairs Committee has also cast doubt on the estimates.
The Federation of Small Businesses has estimated that the introduction of MTD could cost businesses around £3,000 per year in time, salaries and fees.
Some member of the Treasury Committee have suggested that the Government should delay any implementation until a full pilot scheme has been run and assessed.
As ever with MTD, we will have to wait and see!