As I’m sure some of you are already aware, the Government have recently announced that the Making Tax Digital (MTD) initiative has been shelved pending the June 8th General Election.
It is anticipated that MTD will eventually go ahead in some form, although the calling of a General Election has provided an opportunity to withdraw these clauses and Schedule from the Finance Bill, which will be enacted later today.
The rollout for MTD was scheduled to go ahead in April 2018 for unincorporated businesses and landlords above the VAT threshold. The MTD provisions set out in the Finance Bill will now be subject to further scrutiny and at this stage it is unclear as to whether the scheme will be deferred temporarily or indefinitely. The answer to this question will now depend on the Election outcome, although few of the opposition parties seemingly have any detailed strategy here.
We will keep you posted on any further MTD developments.