Investment in HMRC’s systems is key to successful tax digitalisation

Mid-sized businesses believe that moving all tax reporting to a digital process will make the tax system more efficient according to new research from BDO.

The findings reveal that as a result of their experience of making tax digital (MTD) for VAT 82% of business leaders believe that now is the right time to digitalise further areas of the tax system.

The firm suggests that investing more in HMRC to improve its systems and IT teams is something the chancellor might be considering ahead of the 2021 autumn Budget.

Paul Falvey tax partner at BDO said: ‘The pandemic has put everyone under pressure and HMRC was right to delay some areas of MTD if they did not have the resources to roll it out effectively during the peak of Covid-19.

‘However HMRC knows that as we emerge from the pandemic taxpayers still need all...