Making Tax Digital removed from the Finance Bill

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Making Tax Digital has been removed from the Finance Bill 2017.

Following Theresa May’s announcement of a general election on June 8, the government reduced the bill, allowing ‘more complex’ issues to be debated on after the election has been held.

Other tax measures including corporate loss relief were also removed.

Making Tax Digital is a £1.3bn investment programme that will mark a fundamental change in the way that businesses interact with HMRC.

Every taxpayer will have a Digital Tax Account; a Personal Tax Account for individuals and a Business Tax Account for businesses, accessible online.

Individual taxpayers and businesses will be able to register, file, pay and update their information at any time, all online

Businesses will use accounting software to record transactions and make quarterly submissions to HMRC which contain details of income and expenditure for the quarter.

Chas Roy-Chowdhury, head of tax at the Association of Chartered Certified Accountants said: “ACCA has raised some serious concerns about the implementation plan for MTD, and we advised at last week’s Treasury Select Committee hearing that it be delayed until after the general election to ensure that there is time for full and comprehensive debate.”

Peter Way Rider, tax manager at Ellis & Co added: “Making Tax Digital has been heavily scrutinised, mainly due to its tight timeframe.

“It is unknown whether HMRC will push back the implementation date of April 1, 2018 for VAT-paying unincorporated businesses with a turnover above £85,000 now Making tax Digital has been dropped from the Bill.”