CTG submits evidence on Making Tax Digital proposals to Lords’ committee

Responding to a call for evidence by the House of Lords Economic Affairs Finance Bill Sub-Committee on the Government’s recent proposals on Making Tax Digital (MTD), CTG has submitted a note highlighting its concerns that charity trading subsidiaries are not to be included in the general exemption from requirements.

CTG reiterated comments made in its original response to the MTD consultations, namely that charities are often required by administrative, legal and financial practicalities to operate a wholly owned trading subsidiary in order to make activities tax effective. Requiring trading subsidiaries to comply with the proposed rules would mean the charity having to operate two systems (which would add complexity) or consider maintaining digital records for the whole charity group, undermining the proposed exemption.

For more information on the Making Tax Digital agenda, click here.