Commenting on today’s VAT announcements in the Chancellor’s Spring Statement, Jayne Harrold indirect tax director at PwC, said:
“Small businesses will be relieved to hear that in the Written Ministerial Statement the Chancellor has confirmed there will be a light touch approach to penalties on the introduction of Making Tax Digital (MTD) for VAT, which affects all VAT registered businesses and requires them to be able to use software to automatically file their VAT returns with HMRC. He also confirmed that MTD will not be extended to any new taxes or businesses in 2020.
“Two simplifications that will be welcomed are the consultation on simplification of partial exemption and the capital goods scheme which are complex and difficult to administer, and the potential reform of VAT refund rules for central government.”
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