The National Association of Specialist Dental Accountants and Lawyers (NASDAL), which JW Hinks is a member of, has praised the decision to remove Making Tax Digital (MTD) from the Finance Bill – albeit only temporarily.
This is good news for UK dentists, said NASDAL, who were highly critical of the scheme and wary of the impact it would have on medical professionals.
MTD would see all but the smallest of businesses prepare and submit their financial accounts online, using specialist accounting software and HM Revenue & Customs’ (HMRC) own digital tax portal.
However, one of the key tenets of the scheme is the submission of quarterly tax returns to HMRC.
This may not present much of an issue to most businesses, said NASDAL, as they are used to preparing VAT accounts on a quarterly basis.
For dentists, however, the preparation of accounts is largely an annual affair, and therefore practice owners will not have staff sufficiently trained or on hand to prepare accounts on a month-to-month basis.
Alan Suggett, media officer at NASDAL, said: “The aims of the scheme appeared to be laudable in terms of simplifying and making the tax system more efficient. However, the dental sector would have faced specific challenges.”
MTD, as well as 622 of the 762 other pages in the Government’s 2017 Finance Bill, was dropped following the announcement of the Prime Minister’s snap election.
Other redacted measures include plans to cut the tax-free dividend allowance from £5,000 to £2,000 from April 2018, and plans to reduce the money purchase allowance from £10,000 to £4,000.
The latter would only affect people aged 55 and over who have already made use of pension freedoms.