Our experienced Tax Partner Simon Denton has said that the Government’s surprise move to drop Making Tax Digital (MTD) from the Finance Bill 2017 will be “short-lived”.
The comments come after the Government announced on Tuesday 25 April that the controversial project, which will force millions of businesses and self-employed taxpayers to submit quarterly tax updates to HM Revenue & Customs (HMRC), would be shelved before Parliament adjourns for the General Election.
Simon said that MTD’s proposed roll-out for April 2018 would most likely remain unchanged following the move.
“Following the Government’s announcement, I have seen no solid evidence that the introduction of Making Tax Digital will be delayed, despite mounting criticism from tax and professional bodies,” he said.
“Previously, our team at Milsted Langdon has estimated that around half of our client base is unprepared to adapt to MTD in line with the Government’s proposed timescale – which I am sure will remain unchanged following this announcement.
“Chances are that the legislation – which may have temporarily been shelved – will be included within a second post-election Finance Act following whatever happens on 8 June.
“Previously, HMRC has pressed ahead with its Making Tax Digital plans time after time, despite whatever serious concerns have been raised,” he said.
“The way HMRC has approached the major change has, from the very beginning, been far from ideal. However, Milsted Langdon continues to actively engage with the changes that will be required and, as a result, we are well placed to help and minimise any disruption experienced by taxpayers”.