Chancellor pushes on with Making Tax Digital

The Chancellor Philip Hammond has confirmed that he will push ahead with Making Tax Digital for VAT reforms in April, despite warnings that many firms are not ready for the change.

In the Chancellor’s written ministerial statement, he said that Making Tax Digital “is an important first step in this modernisation of the tax system to which the government remains committed.”

Calls to increase VAT threshold

The Association of Independent Professionals and the Self-Employed (IPSE) has called on the Chancellor to increase the VAT threshold from £85,000 to incentivise self-employed workers.

The plea was issued in response to a government consultation on the VAT threshold.

This consultation was opened after the Office for Tax Simplification (OTS) suggested that the threshold should be lowered significantly to £26,000 - the UK’s national average wage.