Digitalisation should ‘grow organically’, says CIOT

In response to the recent Public Accounts Committee (PAC) inquiry into making tax digital (MTD) the Chartered Institute of Taxation (CIOT) agrees that in principle digitalisation offers the best way to improve the efficiency and effectiveness of the tax system but said it should be allowed to grow organically with systems created that are attractive enough that businesses choose to migrate to them as has happened with online filing more widely. 

It believes that the failure to consult properly on MTD has resulted in delays scope changes and widespread resistance to its requirements which many consider unnecessary or unduly onerous. While the commitment to consulting on the needs of smaller businesses is appreciated the institute recommends that the government should also consult on the fundamentals of MTD. 

In the absence of such consultation HMRC and the government need to act on...