We would like to thank ACCA members for the time they have taken to present evidence and engage with ministers on this issue
—Chas Roy-Chowdhury, ACCA

ACCA (the Association of Chartered Certified Accountants) has welcomed HMRC’s announcement that the mandatory introduction of Making Tax Digital (MTD) will be deferred until 2020.

The government today (13 July) announced that the Finance Bill will be introduced to Parliament until after the summer recess and contains amendments to original proposals on MTD. Non-VAT reporting will remain voluntary until 2020.

Chas Roy-Chowdhury, Head of Taxation at ACCA, says

‘Today’s announcement be warmly welcomed by millions of small businesses who were concerned about, or simply unaware, of MTD’s introduction and will give them and their tax advisers time to prepare. HMRC will also benefit from more time to ensure their systems are in place.

This announcement demonstrates that HMRC have listened to and sincerely engaged with concerns raised by ACCA along with a range of tax bodies and professionals. 

We would like to thank ACCA members for the time they have taken to present evidence and engage with ministers on this issue.’

Chas Roy-Chowdhury adds, however, that there are issues with the new proposals,

'For voluntary MTD to be available we will still need to have all the legislation in place from the beginning. This suggests we may still have the highly compressed initial timetable, although the scope to amend and adjust before it becomes mandatory will be there (provided Parliamentary time can be found). 

There is also still a worry about the timing of VAT reporting, as many of the largest businesses have a 2 year lead in time for their software systems to cope with a change of this nature, but we are now well past that cut-off date to start development and we do not even have a consultation document, let alone draft legislation.

'We must not forget the wider landscape – Brexit may fundamentally change the nature of VAT as well, meaning two major changes to VAT systems in short order.'

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Notes to Editors

 

About ACCA

ACCA (the Association of Chartered Certified Accountants) is the global body for professional accountants, offering business-relevant, first-choice qualifications to people of application, ability and ambition around the world who seek a rewarding career in accountancy, finance and management. 

ACCA supports its 198,000 members and 486,000 students in 180 countries, helping them to develop successful careers in accounting and business, with the skills required by employers. ACCA works through a network of 101 offices and centres and more than 7,291 Approved Employers worldwide, who provide high standards of employee learning and development. Through its public interest remit, ACCA promotes appropriate regulation of accounting and conducts relevant research to ensure accountancy continues to grow in reputation and influence. 

Founded in 1904, ACCA has consistently held unique core values: opportunity, diversity, innovation, integrity and accountability. It believes that accountants bring value to economies in all stages of development and seek to develop capacity in the profession and encourage the adoption of global standards. ACCA’s core values are aligned to the needs of employers in all sectors and it ensures that through its range of qualifications, it prepares accountants for business. ACCA seeks to open up the profession to people of all backgrounds and remove artificial barriers, innovating its qualifications and delivery to meet the diverse needs of trainee professionals and their employers.