Making Tax Digital Government Response Due in January 2017
Over the summer, the Government consulted with businesses about Making Tax Digital and it's been announced the results will be published next month.
HMRC received over 600 responses to the consultations ‘Voluntary Pay-As-You-Go’ and ‘Bringing Business Tax Into The Digital Age’ via email and post, over 120 responses to the ‘Tax Administration’ consultation, over 200 responses to the consultations on simplification measures and nearly 80 responses to the consultation on making better use of information. This means that once the results are published in the New Year, the Government will have the feedback of well over 1000 businesses to help them decide what route to go down next as thoughts turn to implementation.
Additionally, HMRC undertook research which included 15 face-to-face roundtable events across the UK and 14 webinars which had over 3,000 participants.
These feedback comes amongst feedback from PricewaterhouseCoopers which advises the Government to learn the lessons from other tax authorities when moving forward with MTD. The Federation of Small Businesses believe that implementing MTD would cost the average small business £2,770 when the legislation eventually moves from large businesses to small and medium-sized businesses.
PricewaterhouseCoopers uses the example of Finland, who recently saw huge changes to its taxation system, however without significant system checks and tests, it has been rocky to say the least. The ‘Big Four’ accountancy firm is urging the Government to learn the lessons other countries have faced to help make MTD implementation as smooth as possible on the UK.
Along with the response to the Making Tax Digital consultations, the Government will also publish a draft of the Finance Bill 2017 legislation.
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As with other legislative changes such as RTI, auto enrolment, holiday pay and others, IRIS will be at the forefront of the MTD changes. We’re created a dedicated Making Tax Digital insight page where you can find the latest information that affects you all at a snapshot, and we’ve also got the in-depth Making Tax Digital Hub.