The Association of Convenience Stores has welcomed calls from a House of Lords Finance Sub Committee on Making Tax Digital plans to delay the proposals until at least 2020.
Originally published in August 2016, the government proposals aim to introduce a fully digital tax system with the intention of reducing errors in tax reporting.
The proposal are due to be implemented by 2018, with a one year extension announced by the Chancellor in the Budget to 2019 for businesses under the VAT threshold ((£83k turnover in 2017, £85k in 2018).
The Lords Select Committee on Economic Affairs, Finance Bill Sub-Committee’s report on the draft Finance Bill 2017: Making Tax Digital for Business recommends that the scheme is delayed until 2020 to allow for a full pilot. The report also suggest the government look at which businesses are included in the scheme and improve their assessment of Making Tax Digital’s benefits and costs.
ACS chief executive, James Lowman, said: “We are pleased that the Lords Committee has listened to our concerns about the impact of introducing the Making Tax Digital plans but we remain concerned about the ambitious time frames being put forward by the Government.”
“Implementation by 2018 would put significant pressure on thousands of small stores that do not currently have sufficient connection speeds or mobile coverage, and the Government’s extension to 2019 for those businesses under the VAT threshold will not affect the vast majority of our members.”