Rethink Making Tax Digital urges House of Lords

The House of Lords Economic Affairs Committee is the latest body to consider the Government’s plans for Making Tax Digital.  In its full report, it reached a set of conclusions that echo those of other groups, welcoming the idea of bringing tax into the digital age, but making some firm recommendations:

  • slowing down the implementation as the programme will not be ready, even with the changes announced in the Spring Budget 2017 – the Lords suggested 2020 is a more appropriate target date;
  • increase the threshold for inclusion to that used for VAT;
  • take another look at the cost/benefit case; and
  • educate taxpayers, many of whom it concluded were “blissfully unaware” of the impending arrival of Making Tax Digital.

The Committee chairman, Lord Hollick wrote an open letter to the Prime Minister summarising these views which it believes will deal with many of the issues highlighted in the evidence presented.