Simon Browning, tax partner at UHY Hacker Young in Nottingham, said: “In the face of the snap election many uncertainties have arisen for SMEs and individuals, creating a lot of confusion within the business community. Over half of the Finance Bill has been put on hold this week until the General Election takes place in June, but what does this means for local businesses?
“The biggest change to be announced has been the decision to remove the Making Tax Digital regulations from the Finance Bill, which were due to come into effect in April of 2018. In my opinion this is good news for SMEs and individuals who were faced with a daunting task of meeting new administration requirements over a short period of time, whereby they would be required to file multiple tax returns each year – creating a huge amount of administration for time-poor business people.
“The decision to remove Making Tax Digital from the Finance Bill has led to many of us, myself included, breathing a sigh of relief; allowing us and HMRC to take time to understand a clearer roadmap. Although digitalisation is the future, it should not be implemented in a rushed manner that is detrimental to small business owners and individuals.
“Whilst there is a chance that the new government could revert to the original timetable after the election, I am hopeful that they will take time to put together a clearer plan which can be implemented in a less overwhelming fashion. Although we are facing a period of uncertainty it is reassuring for the business community to see regulations like this shelved and not forced through prematurely.”