Digitalisation is to be welcomed, say MPs

Members of parliament are generally in favour of Making Tax Digital for small businesses according to a survey for the AAT and ACCA. However many are concerned about the timeframe for the implementation of MTD for VAT. 

More than one in three (35%) MPs disagreed with the statement that VAT-registered businesses are adequately prepared to meet the compulsory requirements that their business will need to meet when it comes into force.

Nearly half (43%) were more positive that the scheme would lead to beneficial outcomes for small and medium-sized enterprises (SMEs). A quarter remained neutral at this stage as to whether MTD would be positive these businesses neither agreeing nor disagreeing with the statement while 18% said they did not know. 

Brian Palmer tax policy expert at the AAT said: ‘HMRC’s decision to introduce MTD for VAT reporting only and even then only for businesses with...