Deloitte comments on HMRC’s response to Making Tax Digital consultation has been saved
Deloitte comments on HMRC’s response to Making Tax Digital consultation
31 January 2017
HMRC has today issued a number of documents in response to the Making Tax Digital consultation. The main proposal under consultation was the need for over 5 million businesses and those receiving rental income from properties to submit quarterly updates of their business activity to HMRC digitally.
Patricia Mock, tax director at Deloitte, said:
"Whilst there will be considerable detail to consider we welcome a number of relaxations to the original proposals. In particular, the proposal that businesses need to keep records digitally has been relaxed. Instead they’ll be able to use spreadsheets for record keeping, and receipts and invoices won’t need to be stored digitally.
“HMRC have also said that free software will be available for those with the most straightforward affairs and the year-end return, which was originally to be submitted within 9 months of the period end, must now be submitted by the earlier of 10 months of the period end and 31 January. HMRC’s own analysis makes it clear that this will be a costly change for micro and small businesses, with implementation costs of £1 billion, on top of additional tax HMRC hope to collect in the first three years – which is also about £1 billion.
“However, there is still no certainty as to when the provisions are to commence and the income threshold over which the new rules will apply. This is to be further considered for a final decision before the legislation is laid in March. There will be a detailed testing phase before any of the proposals come in.”
Notes to editors
In this press release references to Deloitte are references to Deloitte LLP, which is among the country's leading professional services firms.
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The information contained in this press release is correct at the time of going to press.
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