“Making Tax Digital” – post General Election – are we back on track?

Although it is widely accepted that Making Tax Digital (MTD), the process by which businesses and the self-employed managing their taxes online, is inevitable, recent developments have cast further doubt over the proposed timetable. HMRC initially confirmed that those with a turnover above the VAT threshold will need to start being reported under the new regime for the first accounting period after 5 April 2018. See “MAKING TAX DIGITAL PLANS CONFIRMED”  However, as a direct result of the announcement of the snap election, it was confirmed on 25 April 2017 that Making Tax Digital had been removed from the Finance Bill 2017.  See “SNAP ELECTION” MEANS MAKING TAX DIGITAL FOR BUSINESS (MTDFB) REMOVED FROM FINANCE BILL. The dust settling after the 8 June election has thrown up further obstacles to the progress of the MTD timetable, perhaps most notably the fact that the financial secretary to the Treasury Jane Ellison, who lost her seat in Battersea. was the day-to-day lead for MTD and her demise is likely to lead to another delay, while her replacement gets up to speed.

We acknowledge the lack of clarity around this issue which affects a significant number of our clients. Although we are in the same boat as all other advisers in that we are not in a position to give definitive advice, we feel that some information needs to be shared in order to prepare our clients for the inevitability of digital reporting.  We have prepared the attached Briefing/Frequently Asked Questions (FAQs) for our clients and will update as and when further information is confirmed.