Speaking at the institute’s annual President’s Luncheon event, he told members that despite the relaxation in the timetable to full implementation of Making Tax Digital, it is ‘still an area requiring close and immediate attention from both tax professionals and policy-makers’.

Despite the delay in its introduction, Making Tax Digital regulation for VAT will take effect from 1 April 2019 and will require VAT-registered persons with turnover above the VAT registration threshold (currently £85,000) to keep digital records and provide regular digital updates to HMRC.

Wider quarterly reporting under Making Tax Digital for sole traders, small businesses and landlords has been pushed back until ‘at least’ 2020.

But Batty said in his speech: ‘The pilots which HMRC have begun need to be scaled up, run over a full financial cycle and fully evaluated. That means checking not just that reports can be made but that those reports are accurate. And assessing and publishing the compliance costs for the businesses taking part.

Thus far, HMRC has not undertaken any publicity other than regularly engaging with accountants and agents over implanting the project.

‘Very few businesses currently understand the impact which the Making Tax Digital (MTD) obligations will have on them,’ Batty said. ‘That means it is essential that HMRC has an adequate budget for a sustained publicity campaign or explain how and when MTD will be introduced and how businesses can prepare.

 ‘We want to grasp this opportunity to work with HMRC to devise a version of MTD that works. Not just making tax digital, but making it doable.’

HMRC has been approached for comment.

Report by Calum Fuller