The CIOT, ATT
and other professional bodies have urged the UK government to reconsider
the timetable for basis period reform alongside other changes in the move
towards a digital tax system.
The professional bodies consider that digital tax reforms are being
implemented too quickly, with the changes to basis periods likely to place
pressure on businesses and their advisers as well as on HMRC.
In a letter to the government, the professional bodies highlight a
number of key concerns for businesses and advisers, including:
– basis period
reform will come on top of the changes required by MTD for income tax and more
small businesses being brought within the scope of MTD for VAT;
– other recent and
forthcoming changes will add further complications – for example, the changing
penalty regimes and the CGT 30-day online reporting and payment system for
disposals of UK residential land; and
– basis period reform
will add complexity for some businesses, and will result in earlier payment of
tax by many – potentially damaging for businesses recovering from the impact of
Covid-19.
The bodies note that the scale and complexity of change will
affect many small and unrepresented businesses, many of which will not
understand the technical changes and will need extra help, and urge the UK
government to undertake an extensive public education programme before
implementation (similar to that before the introduction of self-assessment in
the 1990s).
The letter includes a schedule of key changes along with their
estimated impact.
The professional bodies encourage the UK government to urgently
reconsider the timetable for the basis period and MTD for income tax proposals.
The CIOT, ATT
and other professional bodies have urged the UK government to reconsider
the timetable for basis period reform alongside other changes in the move
towards a digital tax system.
The professional bodies consider that digital tax reforms are being
implemented too quickly, with the changes to basis periods likely to place
pressure on businesses and their advisers as well as on HMRC.
In a letter to the government, the professional bodies highlight a
number of key concerns for businesses and advisers, including:
– basis period
reform will come on top of the changes required by MTD for income tax and more
small businesses being brought within the scope of MTD for VAT;
– other recent and
forthcoming changes will add further complications – for example, the changing
penalty regimes and the CGT 30-day online reporting and payment system for
disposals of UK residential land; and
– basis period reform
will add complexity for some businesses, and will result in earlier payment of
tax by many – potentially damaging for businesses recovering from the impact of
Covid-19.
The bodies note that the scale and complexity of change will
affect many small and unrepresented businesses, many of which will not
understand the technical changes and will need extra help, and urge the UK
government to undertake an extensive public education programme before
implementation (similar to that before the introduction of self-assessment in
the 1990s).
The letter includes a schedule of key changes along with their
estimated impact.
The professional bodies encourage the UK government to urgently
reconsider the timetable for the basis period and MTD for income tax proposals.
