Expansion of making tax digital – burden or benefit?

Many agree that the intended policy outcome behind making tax digital (MTD) is sound but the practical application of a fully digital approach to tax is a formidable challenge for many and an overwhelming prospect to others. There is however good news. Responding to a recent BDO survey of 500 mid-market businesses 82% of business leaders are convinced by their experiences of MTD for VAT that now is the right time to digitalise further areas of the tax system.

The introduction of MTD for VAT proved difficult with several stops and starts so such a high level of support from businesses may be regarded as surprising. However I suspect that it is the way that MTD for VAT forced businesses to overhaul their own systems to implement ‘digital linking’ from their accounting to VAT return software that helped to convince businesses of the...