DEBATE: Should the government’s Making Tax Digital initiative be delayed?
Should the government’s Making Tax Digital initiative be delayed?
Suren Thiru, head of economics and business finance at the British Chambers of Commerce, says YES.
The Making Tax Digital initiative represents a significant overhaul to the UK’s tax system, which could not be happening at a worse time for both business and government.
HMRC already faces an increasing amount of pressure to ensure that it is prepared for new customs and trade processes for when we leave the EU – made all the harder by the lack of clarity on what they might look like.
There has been a lack of communication about the new programme and what it means for business. A roll-out of this size will also no doubt come with significant teething problems, which in normal circumstances would take time to sort out – and these are not normal times.
It makes little sense for the government to introduce a programme of this scale in April 2019, just a week after Brexit, stretching the resources of HMRC even further.
The project should be delayed by a year, in order to give businesses and government alike more time and resource to navigate the changes ahead.
Carl Reader, founder of the #BeYourOwnBoss movement and chairman of business advisory firm d&t, says NO.
SMEs are the lifeblood of our economy and digitalisation is crucial to their success. Research from QuickBooks shows that using cloud software can save businesses 11 hours a month, allowing them to focus on sales and growing their bottom line.
The Making Tax Digital initiative, due to come into force in April 2019, is a first step towards digitalisation, and should be embraced, not delayed. It may feel a hurdle now, but by taking this small step businesses can open up a new world of technological opportunity, productivity, and efficiency.
In the longer term, putting digital systems at the heart of a business will help future-proof operations, as technology becomes the norm for organisations and those who run them. Integration and automation across business systems will help SMEs by freeing up their time and making them more competitive.
As we approach the government’s deadline, our job now is to help small businesses make the transition seamlessly, open up, and understand the many benefits of Making Tax Digital.