Concerns were raised in 2015 about HMRC being in a hurry to introduce Making Tax Digital (MTD). Now, Whitehall has also joined the ranks of those who are worried about the MTD implementation process.
Chair of the Treasury Select Committee Andrew Tyrie has written to Chancellor of the Exchequer Philip Hammond, recommending that time be taken to introduce MTD. He said that the Government should get everything done correctly rather than just focusing on the delivery timetable.
In March 2015, PwC was one of the first accountancy firms in the UK to bring up the delivery schedule of MTD, calling it too ambitious. Now, with Tyrie voicing his concerns, it gives more credence to PwC’s apprehensions.
The accountancy firm had warned the Government about the MTD timetable by stating that it would be very difficult to implement this complex and huge system in a span of 12 months.
The Association of Tax Technicians (ATT) has also joined those that are worried about the hasty implementation of MTD. ATT expressed concerns after HMRC revealed that it would be hosting six consultations related to MTD but would allow just one month for each consultation. ATT believes that this time limit for each consultation is inadequate.
Tyrie’s letter to Hammond clearly states that HMRC should take time to implement MTD, and that 12 months is insufficient to ensure that all stakeholders benefit from it. He also pointed out that several groups had concerns about the proposals, and these worries must be addressed before going ahead with the implementation.
Tyrie also stated that the consultation process should be carefully analysed since it may necessitate a delay in implementing MTD. He stressed the importance of getting MTD right the first time round since small business owners, including IT contractors, would have to bear the brunt should anything go wrong.