Digital tax plans ‘A total fantasy’ » SMEInsider

Digital tax plans ‘A total fantasy’

More trouble for the government’s Make Tax Digital plans, with the Federation of Small businesses calling the plan to implement to the scheme ‘a total fantasy’.

“Today, small businesses were expecting clarity around how to meet their tax obligations from 2018, and they still do not know what they will face,’ said Mike Cherry, executive chair of the FSB.

“Government now needs to take this time to rethink the proposals.  To make them work, FSB will push for the removal of businesses with turnover of less than £83,000 from the scheme, and for a phased approach that starts initially with the largest firms.  We will also press for implementation in 2020, not next year. As small business owners plan their approach to Brexit, rushing in mandatory quarterly tax reporting is a headache they just don’t need.”

 

‘Unachievable’

The FSB, along with other SME groups, has been critical of the plans that are a flagship policy of the government. Cherry says the FSB will be raising this with Ministers at every level, “Bringing together a broad alliance across the business community, accountancy and tax bodies. FSB will also be working on this as a priority with the influential cross-party Treasury Select Committee, which has already expressed deep concern about the implementation timetable even before this latest delay.”

“The timetable laid out by Ministers in Autumn Statement 2015 is now a total fantasy. It is unachievable given the latest delays announced today. The programme cannot begin before 2020 without causing considerable disruption to economic growth, investment and employment.”