Plans for quarterly digital tax returns shelved

HM Revenue and Customs

Unpopular plans for quarterly digital tax returns have been dropped from the Finance Bill.

Over half of the clauses contained in the Finance Bill have been removed by the Treasury, in order to pass the legislation before parliament is dissolved next week ahead of the General Election.

Amongst the key proposals that have been shelved are plans to ‘Make Tax Digital’ that would have required businesses to keep digital tax records and file quarterly updates to HMRC.

Anita Monteith, tax manager at the Institute of Chartered Accountants, welcomed the moved, she 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."

The Country Land and Business Association (CLA) president, Ross Murray said: “The CLA has consistently said that the Government’s Making Tax Digital proposals were being rushed through without proper consideration for how they would work in practice which would cause significant disruption and costs to rural businesses across the countryside.

“While the delay in implementing the proposals is welcome, particularly to the self-employed, it is likely to be temporary. We now need urgent clarity on the timescales for implementing these sweeping changes and confirmation that the implementation dates due to start next year will in fact be delayed. It is vitally important that rural businesses are not left in limbo and unable to plan ahead. We will be seeking clarity from the new government as soon as it is elected.”