Regional accountancy firm Bishop Fleming has welcomed the scrapping of the government’s controversial plans to digitalise the tax system and force business to make quarterly online returns.
The scheme, which was due to be introduced in April next year have been dropped due to the upcoming General Election.
Bishop Fleming, which has an office in Bath, welcomed the move, claiming that it will now provide more time for the project to be properly scrutinised.
The draft rules were part of Finance Bill 2017, which is currently making its way through Parliament. But the controversial Making Tax Digital plans – which would have required businesses to keep digital tax records and file updates four times a year with the tax office – have been removed from the Bill as there is no time for MPs to discuss it ahead of the 8 June poll. 
Bishop Fleming head of tax Andrew Browne, pictured, said: “It was clear that a great deal more scrutiny was needed before the Making Tax Digital project could proceed. The election allows Parliament pause for thought over the direction of travel on tax digitalisation and how best to reduce costs for businesses.
“As there will now be a delay in bringing forward legislation to require businesses to make quarterly returns, I hope that the planned implementation date of April 2018 will also be delayed, to allow for the results of pilot exercises, and to allow time for the rules to be refined based on actual findings rather than just guesswork.”
Bishop Fleming had already called for a delay earlier this year, claiming the measure appeared “too rushed” and “too unclear”. The firm endorsed a report from MPs on the Treasury Select Committee calling for it to be postponed for at least one or two years to avoid “putting businesses at risk”.
Mr Browne added: “A time for reflection will result in much clearer and better thought through rules in due course to allow for a smoother digital tax revolution.”
Bishop Fleming’s Bath office is one of seven across the South West and Midlands.
