Cost of digitising records will hit all businesses

David Gauke has been warned that large businesses – as well as small ones – could be adversely affected by the requirements of HMRC’s Making Tax Digital (MTD) proposals.

The warning came from Andrew Tyrie MP chairman of the Treasury Committee in a letter responding to feedback from the ICAEW Tax Faculty from informal consultations held with HMRC on the proposals.

Commenting on the correspondence Mr Tyrie said the burden placed on small businesses by MTD was already a concern but it now seemed that large businesses could be affected if their software and systems were not compatible with HMRC’s requirements. He said: ‘Before anything is done to implement these proposals the government needs to provide a comprehensive impact assessment. Full co-operation and consultation on it – with those most affected and also with parliament – will be needed.’

The Tax Faculty reported that businesses would...