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Government Scrap Plans to Make Tax Digital

Just when you thought things couldn’t get any more crazy over there at government HQ, well this week they did, after a shock announcement.

Regular readers of this blog will be only too aware of the “Making Tax Digital” scheme that has been in the works for months now, and how when it came into play then contractors would have to do an online tax return 4 times a year instead of once.

Some contractors liked the idea, while others thought it was stupid. Personally, I can see both the pros and cons, and was at least ready to give it a chance.

Well, it seems that it probably won’t be happening after all, at least not anytime soon, as the government now appear to have lost interest in the idea.

That’s right. After spending millions of pounds and hiring some of the top financial experts in the country, and then using up thousands of hours worth of working time (that could have been spent elsewhere of course), they have now decided that making tax digital just isn’t worth it. That is what it looks like anyway.

Many pundits were expecting the making tax digital scheme to be included in a recent Bill that would have to pass through Parliament. Once accepted, it would have become law, with many people expecting it to be introduced in 2018, before being introduced to all self employed workers by 2020.

However, when the Bill was handed into reception at Parliament, much to the surprise of many politicians in the building that day, there was no mention of making tax digital. Maybe there had been a mistake? This is what some people thought, but it doesn’t look that way.

Underground sources have gone on to confirm that the government have basically given up on the idea, for now at least, and that is why we probably won’t be doing a tax return 4 times a year any time soon.

Some claim that the upcoming general election has something to do with it, while others have mentioned that it just wasn’t a very popular idea all around, both with government staff and the self employed.

I’ve been getting many contractors sending me emails over the last year or two, basically saying they were not looking forward to making tax digital and having to send in a tax return quarterly While I could see where they were coming from, my answer was always the same…”give it a chance.”

It now looks like we won’t get to give it a chance, although who knows exactly what is going to happen. The government might do yet another U-Turn, or even come out with something completely new.

The one thing that I do know is that every contractor out there should have a good accountant, no matter if you have to send in 1 or 4 tax returns a year.

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