Committees

Large businesses could be adversely hit by "Making Tax Digital"

26 April 2016

Rt Hon. Andrew Tyrie MP, Chairman of the Treasury Committee, writes to David Gauke MP, Financial Secretary to the Treasury, to express concerns that large businesses – as well as small ones – could be adversely affected by the requirements of his ‘Making Tax Digital' proposals.  

Chair's comments

Commenting on the correspondence, Mr Tyrie said:

"The extra burden placed on small businesses by ‘Making Tax Digital' was already a source of considerable concern. It now appears that large businesses could also be affected, if their software and systems are not compatible with HMRC's requirements. This would make early implementation all the more unacceptable.

Before anything is done to implement these proposals, the Government now need to provide a comprehensive impact assessment. Full co-operation and consultation on it – with those most affected, and also with Parliament – will be needed. An acceptable plan for its gradual introduction is also essential.

Many businesses are now very concerned that the need to establish and maintain a digital account will be mandatory, and at considerable cost to them. So a reassurance is needed from the Government that no changes at all will be imposed until all three of the above have taken place will also help.

No doubt Making Tax Digital is the future. But businesses and their customers should not be expected to foot the bill for the transition."

Further information

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