TAXMAN’S LIGHT TOUCH

CONTROVERSIAL changes to how companies report VAT are to be enforced with a ‘light touch’.

The Chancellor said the ‘making tax digital’ initiative would still launch on April 1 but promised firms they would not face fines if they do their best to adapt. It will require businesses over the VAT threshold – with a turnover of more than £85,000 – to keep digital records for VAT.

Groups such as the Federation of Small Businesses and the British Chambers of Commerce have warned many companies are not ready. Just 37,000 firms have signed up so far.