Not Making Tax Digital quite yet then…….!
Delaying in Making Tax Digital
I have a personal confession to make….I haven’t spent as much time researching all the ins and out of this new-fangled MTD concept yet as I probably should have done.
That’s possibly because I have painful past memories of researching new government initiatives to death, spending a load of time and money preparing only to find that they are postponed at the 11th hour or abandoned altogether.
I remember when I was helping a Conveyancing firm about a decade ago with the Home Information Pack (HIP) programme how much resource was allocated to an initiative that only a few years later was completely scrapped. Many companies were setup by entrepreneurs for the sole purpose of fulfilling that particular need, a need which after only a few years suddenly met with rapid extinction. Then there was the drawn out introduction of Auto Enrolment; the government are still moving the goalposts around on that one.
Turns out that my tardiness may have paid off this time though as it transpires that MTD is one of a number of proposed laws that have just been dropped from the 2017 Finance Bill.
The imminent and unexpected General Election is the reason; apparently when one is called before a Finance Bill has been passed into law, only non-contentious clauses which the opposition parties can agree upon survive. And guess what? Making Tax Digital isn’t going to be one of them.
And what’s more (or rather less), the list of those that are being left OUT is fairly extensive and includes:-
- Dividend tax rate for 2018/19
- £1000 tax free allowances for property and sundry income
- £500 allowance for tax free pensions advice
- Changes to tax on terminations payments
- Reduction in the money purchase pension annual allowance from £10,000 to £4000
That leaves the key things that remain IN and these include:-
- New Income Tax Rates for 2017/18 (bit hard to shelve those now we’ve all been paid for April!)
- Corporation Tax rates for 2018
- Alcohol and tobacco duty
- Changes to salary sacrifice schemes
- New Car Tax rates
- IR35 for the public sector (that one is actually quite contentious so who knows how that survived the cut!)
But in case you are one of those who is dancing round the room in celebration of the demise of Making Tax Digital, then best you don’t get too excited as it’s only been delayed.
On the assumption that the Tories get re-elected it will doubtless make a re-appearance again in due course and don’t forget we have a potential second budget coming our way in the Autumn.
Unless it’s postponed of course………..or Jeremy Corbyn becomes our next Prime Minister…..