All the clauses relating to Making Tax Digital (MTD) have been dropped from the Finance Bill, so many people have been asking if this means MTD will no longer go ahead? We think that this is highly unlikely.
The Finance Bill has been reduced from 762 pages to an expected 140 pages in order that it can be passed prior to the General Election. The non-contentious clauses have been kept, such as the 2017/18 income tax and corporation rates, and some of those that have been removed are the changes to the dividend rate, £1,000 tax free allowances for trading and property income and changes to the taxation of termination payments.
The provisions that have been dropped in order to get the Bill enacted before the Election will be re-instated when Parliament resumes, although whether the start date for MTD of April 2018 will be pushed back further remains to be seen.
If you have any queries regarding Making Tax Digital please do get in touch with your usual W&P representative, who can give you further advice and information.