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.