We've had a busy last couple of days at Accountex, and our team had many in depth conversations with attendees about the changes happening in the finance world at the moment. One theme that came through loud and clear was Making Tax Digital – with everyone asking what happens now given the recent announcements? The general election is due to take place Thursday 8th June, but what impact does this have on the roll out?
Here is what we know
- Making Tax Digital was removed from the Finance Bill that was progressed prior to the dissolution of parliament.
- Civil servants are now in 'purdah'. This means no information or answers can be shared that could be seen to influence a decision in the election until the new government is established.
So what happens next?
It is fair to say that nobody really knows what is going to happen next, but in our opinion:
- Following the election, whoever wins, the new Chancellor will likely call an emergency budget – this budget will start the process of delivering on the manifesto pledges of the winning party.
- A new finance bill will be prepared to bring back the items that were removed from the previous finance bill – including Making Tax Digital.
- Previously the government was working towards a target of fully implementing Making Tax Digital by May 2020. Given this will be a new Government this date may change or be delayed, but we still firmly believe MTD will be coming in the near future.
What are we doing at Wolters Kluwer
We are continuing with our development plans, assuming the April 2018 launch is maintained, with full roll out by 2020. We continue to put questions to HMRC throughout this period, to assist in our development plans, and they will provide answers as possible – some of these may be put on a backlog until after the election. Our message to the market remains the same; it is vital for advisors to start the process of preparing their practice and engaging their clients for the launch of Making Tax Digital in 2018. Even if Making Tax Digital is delayed, digitalisation is the future of Tax and we all need to be ready.
Want to hear more about Making Tax digital?
Click the link to sign up to our free, online webinar at 10am Tuesday 16th to hear our views on MTD and some of our thoughts on Accountex 2017.