ACS (the Association of Convenience Stores) has criticised the Government for rejecting the recommendation of the House of Lords Economic Affairs Finance Bill Sub-Committee to delay the mandatory introduction of Making Tax Digital (MTD) for VAT by one year to April 2020.
MTD reforms will require VAT registered businesses to submit their VAT records digitally using compatible software. The policy reforms aim to reduce the tax gap and help businesses have a more accurate overview of their tax affairs.
ACS chief executive James Lowman said: “We are disappointed that HMRC has not listened to calls from ACS, business groups and now expert advice from the Finance Committee to delay the roll out of MTD. There are now less than two months until MTD takes effect, but awareness of the change amongst small business owners remains low.”
The Committee had recommended delaying the rollout of MTD based on poor awareness amongst business, limited availability of bridging software products and the pilot being too late to respond to issues it identifies.
ACS submitted evidence to the Committee, raising concerns on the lateness of the pilot process for retailers, scepticism about HMRC’s cost assessments of the policy and evidence that MTD will cause higher agency costs for retailers.
