Digital tax consultation to be delayed until after EU referendum

Digital tax consultation to be delayed until after EU referendum

Consultation on Making Tax Digital put back until after EU referendum

THE CONSULTATION on digital tax accounts is to be delayed until after the EU referendum on 23 June, HM Revenue & Customs has confirmed.

Concerns have been raised that such a delay could truncate the consultation process given that beta tests for the quarterly system are slated to commence in July, while advisers are supposed to be able to manage clients’ affairs from December.

Tax policy expert at AAT Brian Palmer said: “While it is extremely disappointing that the publication of the   Making Tax Digital consultation documents has now been postponed until after the EU Referendum has taken place, from my perspective I can fully understand this decision.

Making Tax Digital is going to be such a fundamental change and will have such ramifications that we do want the full attention of individuals and businesses alike when we finally do get the consultation documents.”

An HMRC spokesman said: “The consultations will be released after the referendum giving plenty of time for review and feedback.”

Last month, Treasury Select Committee chairman Andrew Tyrie expressed concerns over the burden the move would place on taxpayers – particularly businesses.

“This would entail the use of designated software packages. It would have an impact on large businesses (who may not currently have accounting systems which are compatible with HMRC’s requirements) as much as on small businesses, who may not use computers,” he warned in a letter to fellow Conservative David Gauke.

Share

Subscribe to get your daily business insights

Resources & Whitepapers

Why Professional Services Firms Should Ditch Folders and Embrace Metadata

Professional Services Why Professional Services Firms Should Ditch Folders and Embrace Metadata

3y

Why Professional Services Firms Should Ditch Folde...

In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...

View resource
2 Vital keys to Remaining Competitive for Professional Services Firms

2 Vital keys to Remaining Competitive for Professional Services Firms

3y

2 Vital keys to Remaining Competitive for Professi...

In recent months, professional services firms are facing more pressure than ever to deliver value to clients. Often, clients look at the firms own inf...

View resource
Turn Accounts Payable into a value-engine

Accounting Firms Turn Accounts Payable into a value-engine

3y

Turn Accounts Payable into a value-engine

In a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...

View resource
Digital Links: A guide to MTD in 2021

Making Tax Digital Digital Links: A guide to MTD in 2021

3y

Digital Links: A guide to MTD in 2021

The first phase of Making Tax Digital (MTD) saw the requirement for the digital submission of the VAT Return using compliant software. That’s now behi...

View resource