HMRC urged to reconsider timing of Making Tax Digital project

HM Revenue & Customs has come under increased pressure to reset the timetable for its Making Tax Digital (MTD) project, with tax professionals warning that small businesses will struggle with what accountants call the most far-reaching reform of the UK tax system for generations.

Last week the Chartered Institute of Taxation warned that the spirit of voluntary compliance is at stake if the government continues to pursue an unrealistic timetable for implementing compulsory digital record keeping.

“Tax systems exist for the benefit of society, not vice versa, and the business case for any change to the tax system should be based on the total economic impact, not just [aspects affecting HMRC],” the UK tax committee of the Association of Chartered Certified Accountants said as six MTD consultations closed on November 7.

Read more: My news story for Tax Analysts, 9 Novmember (paywall).