Next steps on the Finance Bill 2017 and Making Tax Digital

Finance Bill 2017

Government has confirmed that the Finance Bill will be introduced as soon as possible after the summer recess. This will legislate for all policies that were included in the pre-election Finance Bill which was originally drafted with 776 pages but, following a debate in the House of Commons on 25th April 2017, it was shortened to 156 pages to receive Royal Assent prior to the general election.

The clauses that were omitted will be reinstated and all policies originally announced to start from April 2017 will be effective from that date.

See our previous news item here which summarises clauses that had been removed and are now set to be reintroduced.

Making Tax Digital

Government are making changes, following concerns from small businesses, to the introduction of the Making Tax Digital regime.

Only businesses with a turnover above the VAT threshold (currently £85,000) will have to keep digital records from 2019 and only for VAT purposes.

Businesses will not be asked to keep digital records or to update HMRC quarterly for other taxes, until at least 2020, as all businesses will have at least two years to adapt to the changes before being asked to keep digital records for other taxes.

Making Tax Digital will be available on a voluntary basis for the smallest businesses, and for other taxes.

Aspire Comment

It has not come as a surprise that Government will be reintroducing the omitted clauses into the Finance Bill 2017 following Government’s summer recess, as per the original draft Finance Bill 2017.

If you would like to discuss how the legislation may impact you, then please give Aspire a call.

It is reassuring to see that Government have considered taxpayers concerns regarding Making Tax Digital and, whilst still bringing the tax system into the digital age, they have amended the introduction of the regime by loosening the requirements for small businesses in particular.