Making tax digital to be delayed
The Treasury Select Committee has reviewed the proposals for the introduction of “Making tax digital” (MTD) and have agreed with the various professional bodies that if the new systems are introduced too quickly there could be a disaster.
It would significantly increase burdens on small businesses and the overall benefits of mandating the digitising of record keeping and quarterly reporting, as is currently envisaged, have yet to be proven.
The Select Committee further note that the cost to business of introducing MTD, as well as the continuing costs of maintaining digital records and submitting quarterly updates are of further concern to the Committee, as is the availability and functionality of the free software that has been promised.
At the time of writing we are awaiting the Government response to the November 2016 consultation and we will keep you updated about the implications for your business. Remembers that the proposals as they are currently drafted will apply to property rental businesses as well as trading businesses.
Many of these proposals may have significant implications for your business. We will update you on further details once we know more. Get in touch if you would like to discuss how this will affect you or call 0161 249 5040