Originally written by Timothy Adler on Small Business
Labour will stop the rollout of Making Tax Digital to all VAT-registered small businesses if it wins the general election.
Currently, MTD only applies to VAT-registered small businesses with turnover higher than £85,000. However, HM Revenue & Customs is planning to extend MTD to all VAT-able small businesses in its drive to find more revenue.
Rebecca Long-Bailey, shadow business secretary, told Radio 4’s Today programme: ““We’re going to scrap quarterly reporting for companies with turnover under £85,000.”
Long-Bailey was speaking on the morning Labour published its 20 Pledges to Business document, which encapsulates Labour’s thinking when it comes to helping small businesses, which Long-Bailey describes as “the lifeblood of our economy and our communities”.
>See also: Business rates reform key, says Labour business chairman Rachel Reeves
Although most of the 20 pledges have been announced elsewhere, those of most interest to small business are:
Reform business rates
Introduce statutory annual revaluations to stop small businesses facing periodic and unmanageable rate hikes
Guarantee a fair and transparent appeals process
Exclude new investment in plant and machinery from future business rates valuation to encourage investment
Establish a £250bn UK National Investment Bank
The National Investment Bank and a network of regional and national development banks will