Pilot for Making Tax Digital

When I last wrote about Making Tax Digital (MTD) in Taxation (‘No quills approach’ 24 November) I ended by saying that the true measure of its success must be that all stakeholders see it as one and that it is worth taking the time to achieve that. My view is unchanged. MTD holds huge potential for improving tax administration not just for HMRC but for businesses and agents – as long as it is designed to reflect the needs of all parties involved. I still believe that it should be optional for small businesses below the VAT threshold and that a clear business case is a better driver than mandation.

These views seem to have been widely shared by respondents to last year’s consultation by the House of Commons’ Treasury Committee and most recently by the House of Lords’ Economic Affairs Committee. All are supportive of harnessing the power of...