The Institute of Chartered Accountants in England and Wales (ICAEW) has called for Chancellor Philip Hammond to re-evaluate the timetable for the successful implementation of key government initiatives, such as Making Tax Digital (MTD) and the Apprenticeship Levy.
In a letter to the Chancellor ahead of the 2017 Spring Budget on 8 March, the Institute warned that the cumulative effect of MTD, the Levy and the obligation to report payment practices, combined with uncertainty caused by Brexit, may ‘act to hold business back’.
The ICAEW has recommended that the initiatives be implemented gradually over a period of ‘at least ten years, if not longer’.
A call for additional resources to be provided to the Regulatory Policy Committee was also made by the Institute.
It believes that this may help the Committee to ‘better measure the impact of the new regulations’, and supply ‘comprehensive advice’ on the timing of their introduction.
Michael Izza, Chief Executive of the ICAEW, commented: ‘Concerns over the time commitment required from a growing compliance list, or the confusion caused by the sheer churn in new regulation, all create an environment which does not incentivise the kinds of productivity-enhancing investment the government wants business to carry out.’