Responding to significant changes in the Government’s Making Tax Digital programme, Mike Cherry, Federation of Small Business (FSB) National Chairman, said: “We’re delighted that the Chancellor’s team in the Treasury has listened to our concerns about the mandatory aspects of Making Tax Digital, and has now decided to change their planned timetable.
“The exemption of the very smallest firms below the £85,000 turnover VAT threshold has been FSB’s top priority for reform, and now millions of business owners will be relieved. This is a positive decision, and will be a real lifeline for small firms already facing a hugely challenging economic climate.
“Thanks to the Chancellor’s intervention, they will only fall into scope when ready to do so. Today’s announcement promises to make the rollout of the programme far more manageable for all of the nation’s small firms.
“We look forward to receiving more detail from the Treasury on requirements for those small firms above the threshold that will have to comply from 2019. We will continue to work together on how we can best support these businesses as well as those that voluntarily opt into the programme over the coming years.”