Making Tax Digital (MTD) shelved!
The Treasury has removed 72 of the 136 clauses from the Finance Bill so that they could get it through Parliament before it is dissolved ahead of the General Election. Amongst the key proposals that have been shelved are plans to ‘Make Tax Digital’ by forcing small businesses to file multiple tax returns each year. Making Tax Digital was an unpopular plan as it placed a huge administrative burden on small business owners. For example, those who earn £85,000 or more would have to file a staggering five tax returns per year.
Anita Monteith of the Institute of Chartered Accountants in England and Wales said: “This is a sensible decision by the Government,” “Making Tax Digital plans remain controversial and need more scrutiny by those who will be affected, and most importantly proper parliamentary debate – a clear roadmap as to how it will work in practice is needed.”