‘Making Tax Digital’ timetable at risk as election reshuffle overhauls Treasury
Originally published on CCH Daily on 13 June 2017.
Ray McCann, partner at Joseph Hage Aaronson, and CIOT vice president, comments on plans for Making Tax Digital.
Plans to start quarterly reporting under Making Tax Digital could come up against stiff opposition under the new Conservative minority government, as the reshuffle sees top jobs at the Treasury changing hands and a hollowing out of expertise on the intricacies of HMRC’s tax digitisation plans, reports Sara White, Editor, Accountancy and CCH Daily.
There are also serious reservations about the rushed timetable for the introduction of Making Tax Digital – unincorporated businesses, landlords and the self-employed registered for VAT will have to start reporting quarterly from 1 April 2018.
The timing issue is one of the biggest worries for business and advisers, while any uncertainty brought about by the minority government will only make the situation more uncertain.
Ray McCann CTA, said:
‘I think that the direction of Making Tax Digital will not itself be affected but I would not be surprised if the timing goes out of the window.
‘There is significant cost and the proposed revenue savings are likely to be looked on with some extra scepticism as to whether in the end Making Tax Digital is self-financing, which I do not think it will be.
‘David Gauke’s departure together with Jane Ellison losing her seat mean almost a complete change, both were generally seen as bringing a positive approach to their relationship with the profession.’
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