Introduce tax digitisation in 2020 to give business time, says ACCA
The Government has today (Tuesday, 31 January) announced that it will need more time to consider the responses to its Making Tax Digital – Bringing Business Tax into the Digital Age consultation, which has now closed. In the meantime, HMRC has published draft legislation together with a tax information and impact note.
But ACCA, the global body for professional accountants, says it’s hoping the Government will choose to defer the move until 2020 to give businesses time to prepare.
ACCA’s head of tax, Chas Roy-Chowdhury, said: “Getting tax bills right first time is clearly important. So HMRC’s plans go some way to ensuring this happens.
“Our concerns about this project have always centred on the pressures of quarterly reporting for filers, and the practicalities and cost of doing so.
“We are pleased that logistics for business have been taken into account – such as being able to use spread sheets to record receipts and expenditure, and that for those businesses that cannot go digital will not be required to do so.
“We are also pleased that HMRC has said further consideration is needed by government on initial exemption thresholds and deferring the changes for some small businesses alongside their business costs – such as software.
“But we are disappointed that there is no full scale deferral especially in the light of Brexit, business uncertainty and the changes ahead – we hope the Government’s final decision will be a wholesale deferral to 2020 so that business can prepare.
“We also believe that SMEs need to be exempt at least to the VAT threshold at £83,000.
“We look forward to continuing our work with HMRC and ACCA will be giving evidence to future Treasury Select Committee hearings.”