A lords committee have called for a minimum 1 year delay to the Making Tax Digital (MTD) initiative, claiming that HMRC have neglected their responsibility to small businesses, and that the costs will exceed those outlined in the impact assessment.
MTD is currently scheduled for a mandatory roll out in April 2019, but the House of Lords Economic Affairs Committee have deemed that as far too short a notice given the lack of support provided. The committee instead suggested it should be introduced as a “staged transition” for April 2022.
The main reasons provided by the Lords, included low awareness from affected businesses and difficulty in the software market. They also brought into question the justification behind the programme and the assumptions made by it.
For the full report published by the committee follow this link: House of Lords Report.