Making Tax Digital reforms a lifeline for small firms

LLB Reporter

Source: ©Photoshot

This is what they said

The Federation of Small Business has Thursday, responded to the significant changes in the government’s Making Tax Digital programme.

Mike Cherry, Federation of Small Business (FSB) national chairman,said: “We’re delighted that the Chancellor’s team in the Treasury has listened to our concerns about the mandatory aspects of Making Tax Digital, and has now decided to change their planned timetable.

“The exemption of the very smallest firms below the £85,000 turnover VAT threshold has been FSB’s top priority for reform, and now millions of business owners will be relieved. This is a positive decision, and will be a real lifeline for small firms already facing a hugely challenging economic climate. Thanks to the Chancellor’s intervention, they will only fall into scope when ready to do so.

“Today’s announcement promises to make the rollout of the programme far more manageable for all of the nation’s small firms.

“We look forward to receiving more detail from the Treasury on requirements for those small firms above the threshold that will have to comply from 2019. We will continue to work together on how we can best support these businesses as well as those that voluntarily opt into the programme over the coming years.”

Alan Laing, MD, UK & Ireland, Sage said: “We know that businesses using technology are more likely to survive and thrive – and we also know that the UK currently lags behind other nations in terms of digital capability. The announcements on the significant changes to Making Tax Digital potentially slow the pace of the Government’s vision for a Digital Britain, a vision which could help the UK capitalise on the huge benefits of technology to help drive productivity, just as we have seen in other countries, like Brazil, Australia and Ireland, as well as with those companies that have been early adopters.

“In a day and age where 56% of small businesses still use paper and pen or excel rather than software, we’re surprised that government isn’t doing more to help businesses benefit from the productivity opportunities through tech as it drives the UK’s digital agenda.

“At Sage, we remain committed to supporting businesses on the digital journey that includes the benefits of tech, automation and artificial intelligence so we hope that the Government’s ultimate direction and vision will remain firm, even if the timetable and rollout is moderated.”

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