‘Making Tax Digital’ deferral is not enough, Lords committee says

The digitisation of UK tax compliance is to be welcomed but its roll-out is being rushed, imposing unnecessary burdens and causing anxiety and disquiet among small businesses, a House of Lords finance bill subcommittee has warned …

Under revised plans announced on March 8, the scheme will be implemented in 2018 for larger businesses and in 2019 for those with turnover above £10,000, but the planned pilot will not be complete before the scheme’s launch, committee Chair Lord Clive Hollick said in letters to Prime Minister Theresa May and Chancellor of the Exchequer Philip Hammond on March 16.

Implementation should be delayed until 2020 to allow for a full pilot, Hollick said. Tax professionals had welcomed the delay announced in the budget but warned that the Making Tax Digital software is not yet ready and that the timetable remains challenging.

Read more: My news story for Tax Analysts, March 18 (paywall)

Parliament: Put the brakes on Making Tax Digital for businesses, urges Committee