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Making Tax Digital Hits an Election Road Block

Making Tax Digital

With the recent election catching everyone off guard, a lot of issues have been thrown up in the air. One thing that has been left in uncertainty is the Making Tax Digital (MTD) scheme which has confused and stressed out both business owners and accountants alike.

Making Tax Digital is a scheme that is being rolled out to UK businesses gradually. The aim is to move tax management online. Businesses will be able to submit information digitally and log into their account to see a real-time overview of their finances. Businesses are also going to have to submit quarterly returns as opposed to annual ones, which has been met with criticism over the time it will take to do this.

Most people were expecting a Conservative government to be in a stronger position after the election which would’ve meant Making Tax Digital would likely go ahead as planned.

However, the MP in charge of Making Tax Digital, Jane Ellison recently lost her seat in Battersea during the General Election meaning that no one quite knows what way MTD will go.

It’s generally thought that because the government is busy trying to forge a deal with the Democratic Unionist Party (DUC), there will simply not be enough time to spend on thinking about MTD in time for the next Finance Bill. This could mean that it will be delayed but there are also rumours that the scheme will be dropped.

Is it being scrapped?

This new wave of uncertainty comes after Making Tax Digital was removed from the 2017 Finance Bill earlier this year. That led to speculations that the scheme was due to be scrapped altogether, particularly because it has proven to be unpopular for many businesses.

Is a delay good news?

At the moment, a delay at least is expected. However, that doesn’t mean you shouldn’t prepare for it in the future. It could be worth moving towards doing your taxes online as this looks like the future of it, whether the scheme goes ahead as planned or not.

From some peoples’ point of view, delays are good news. There have been a lot of complaints about the time scale that small businesses will have before they’re expected to fulfil MTD requirements. For smaller businesses, it will mean that some will have to invest in getting computer systems up to date and also in training any staff to be able to accommodate MTD.


What do you think of the Making Tax Digital scheme? Would you like to see it scrapped or delayed? Let us know what you think!

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