Making Tax Digital – Further update

MTD dropped from Finance Bill 2017

In view of the impending election in June a number of measures have been dropped from the Finance Bill 2017 in order to get this passed into law before the dissolution of Parliament on 3 May 2017. The Making Tax Digital clauses in the Bill are amongst those that have been dropped. However, it is expected that Making Tax Digital will make an early return in the next Parliament, no matter which party wins the election.

As you may have read in the press both the House of Commons Treasury Committee and the House of Lords Select Committee on Economic Affairs, Finance Bill Sub-Committee have called for a delay in the implementation of Making Tax Digital to give everyone more time to prepare for what will be a major change to the tax system.  The recognised Accountancy and Taxation professional bodies have also requested a postponement. It remains to be seen whether this wish will be granted or not in the next Parliament.

Our advice therefore continues to be that we and our clients need to start preparing for Making Tax Digital now.

You can read more here about Making Tax Digital or Contact Us to discuss further.