Lords – they say “NO”
The brakes should be put on MTD say the House of Lords Finance Bill Sub-Committee. It’s all going to fast and has not been properly tried and tested. And so say all of us……
Lord Hollick, Chairman of the Sub-Committee, said……..
“Many small businesses and landlords are simply unaware of or not ready to cope with the additional administrative and financial burdens that will be imposed by digital taxation.
“We welcome the Government’s announcement in the Spring Budget that the scheme would not apply to businesses with a turnover below the VAT threshold until April 2019. However, this does not go nearly far enough and it needs to further delay the scheme’s implementation, and take a more incremental and gradual approach based upon the evidence from the pilot.
“This scheme coincides with changes to business rates and dividend taxation, all of which will impact some small businesses.
“A full pilot will ensure the software works and provide hard evidence of the additional financial and administrative burdens on businesses. It will also provide evidence in place of the widely disbelieved assessment of costs and benefits of the introduction of Making Tax Digital.
“We are sceptical of the benefits to small businesses of regular digital reporting. We recommend that the scheme remains optional for businesses with a turnover below the VAT threshold.”
That said….will the government listen …. IMO two chances of that ….. slim and none.