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Treasury Committee chair urges caution on HMRC's digital plans
The introduction of Making Tax Digital (MTD) should not be rushed according to the House of Commons’ Treasury Committee.
After hearing evidence from the Federation of Small Businesses (FSB) that implementing MTD is likely to cost businesses £2 770 a year on average Andrew Tyrie committee chair wrote to the chancellor of the exchequer saying it ‘may trigger their closure’ and cause others to trade in the hidden economy. Both would result in revenue loss.
Even for businesses that did try to meet their tax obligations MTD would incur additional costs in both time and money which might reduce their taxable profits.
He asked whether the exchequer had taken account of each of these likely effects of MTD.
He said it was essential that the government produce an impact assessment reflecting ‘the specific impact on seasonal businesses the lack...
