Making Tax Digital plans delayed by Government

 
The proposed new Government policy of Making Tax Digital (MTD) has been dropped from the Finance Bill, which was the last to be debated in the Commons before Parliament adjourns for the General Election.
 
The proposals would mean that many businesses and self-employed people would need to file multiple online tax returns per year from as early as April 2018.
 
The proposals have been removed from the Finance Bill because with the General Election planned for 8 June 2017, there would be no time for members of Parliament to discuss the new arrangements in depth.
 
The delay of the Policy is therefore being welcomed as a positive step because it will allow more time for the project to be appropriately scrutinised and tested.
 
Although there is now a delay in bringing forward legislation to require businesses to make quarterly returns, the drive for tax digitalisation will not abate. The need to integrate systems and increase productivity are likely to remain as much of a priority for the new Government.
 
Businesses should take this opportunity to review their accounting systems and the benefits offered by utilising the cloud to ensure they are prepared for the changes that are to come.
 
A short pause will allow time to review a smoother digital tax revolution with more clarity and better understanding all round.
 
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