Farmer relief as online tax requirements dropped from Finance Bill

The government has dropped its Making Tax Digital (MTD) plans from the Finance Bill to slim it down and ensure it was passed before Parliament shuts down for the election.

However, advisers warn that if re-elected, the Conservative Party would be likely to resurrect the plan in a new Bill following a post-election Budget.

Many other provisions were also dropped and the Bill was approved by both houses this week.

It is expected to receive Royal Assent on Tuesday 2 May.

See also: How online tax reporting will challenge farm businesses

The move follows heavy lobbying by business interests and especially those representing small businesses.

The NFU welcomed the news that the MTD plans had been dropped from the Bill.

The union had continued to make the case for exempting farmers from MTD, or at the very least delaying them being forced to make quarterly online income reports to HMRC.

“Although we acknowledge that the removal of the proposals from this Finance Bill may prove to be a temporary delay in the implementation of Making Tax Digital legislation, we are pleased it will ensure sufficient time is given for proper scrutiny and debate of the proposals,” said the NFU.

The government had originally sought to impose MTD on all businesses with a turnover of more than £10,000 from April 2018.

However, the March 2016 Budget brought in a delay of one year for businesses with a turnover below the £83,000 VAT registration threshold.

Are you, like many other farms, missing out on tax claims for R&D?

If you’re a limited company, you could be eligible for tax credits if you’re carrying out R&D on your farm. For more information and to find out if you’re eligible visit our R&D tax credits page.

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