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17 March 2017

Cross-party committee calls for delay in Government digital tax plans

FSB is welcoming a report from an influential House of Lords committee, which calls for a delay in the launch of the Government’s ‘Making Tax Digital’ programme until 2020. The cross-party Economic Affairs Finance Bill Sub-Committee has also recommended that the smallest and most vulnerable businesses are exempt from plans to force companies to report on a quarterly basis.

Mike Cherry, National Chairman at the Federation of Small Businesses, said:

“Today’s cross-party report from the House of Lords backs FSB’s proposals to make the Government’s Making Tax Digital programme work.  A delay to 2020 would give hard-pressed businesses time to get their systems ready, and a higher exemption threshold would take out those that are going to be struggling the most with this change.  In addition we want to see a more comprehensive Impact Assessment as more details of the scheme become clear.”

Today’s report comes after the Treasury Select Committee warned in January that the programme “could be a disaster” for small firms.