• The House of Lords Economic Affairs Committee’s report highlights the problems Making Tax Digital (‘MTD’) will cause for small businesses.
  • The cost and administrative burden has been vastly underestimated by HMRC in impact assessments.
  • Tax payers are being charged extra to comply with their tax obligations.
  • The report suggests that the implementation of MTD should be delayed to April 2020, while encouraging businesses to join voluntarily.

Our Comment

It has been made clear by the House of Lords that they believe that the MTD process is being rushed as the scope and timeframe of the MTD pilot is too narrow on the basis that it was only opened to the public on 16th October 2018. This raises the question – will HMRC systems be ready for MTD, as HMRC have a poor track record when introducing reliable technology?

The report highlights how small business are bearing an increased cost solely to comply with their tax obligations. It has been suggested that a basic free MTD compliant software should be launched by HMRC to provide small businesses with a cost-free solution to MTD.

Minden U.K. Limited use Aspire Business Partnership LLP. This firm provide Minden U.K. Ltd with practical and commercially sound advice in relation to all aspects of compliance, business strategy and conflict resolution. Original article can be found on Aspire’s website: