The Government has been urged to postpone its plans for the introduction of “Making Tax Digital” which will require the digital recording and submission of VAT returns from 1 April 2019.
There are reports of farm businesses going to desperate lengths to get access to digital connections.
The patchy digital infrastructure across many rural areas means farmers are still struggling to access stable and secure internet.
And of the farmers and small businesses who are online, many are struggling to get to grips with the leading accredited software solutions, finding them difficult to use.
It comes as a recent report from the House of Lords Economic Affairs Committee was highly critical of HMRC for neglecting its responsibility to support small businesses with Making Tax Digital.
Farming and rural organisations wrote to Nicky Morgan MP, Chair of the House of Commons Treasury Committee, to ask her to call Treasury Ministers to appear before her Committee to answer criticisms set out within the House of Lords report.
'Nowhere near ready'
The Tenant Farmers Association (TFA), one of the organisations who wrote to Ms Morgan, said the plans have to be postponed.
TFA Chief Executive, George Dunn, said: “The simple truth is that we are nowhere near ready for the roll-out of Making Tax Digital and it has got to be postponed.
“Our own discussions with accountants working with farm businesses support these conclusions. We had been told, HMRC would release information about exemptions to the scheme by November, but nothing has been communicated.
“Some farmers are using the free, unsecure Wi-Fi available in cafés and some fast food restaurants to conduct day-to-day transactions with HMRC and other Government Departments. Given that these networks are public and lack good security, this is simply unacceptable.”
He added: “Unless or until we have adequate digital coverage for all rural areas, we will need easy to access exemptions from the requirement to file information digitally.
“Having denied many areas this digital connectivity, it will also take time to ensure that individuals are able to use online tools confidently to carry out required tasks,” said Mr Dunn.
April 2019
Making Tax Digital comes into force in April next year and will see millions of businesses and self-employed people having to file multiple tax returns each year.
In the rural sector, farming and other rural businesses with turnovers above the current £85,000 VAT threshold will fall within the new Making Tax Digital regime.
Once in, they stay in, even if their turnover falls below that level at a future date. VAT registered-businesses whose turnover is below the VAT threshold can opt in to MVD if they wish.
