Approximately 87% called for the rise, while the two bodies also called for the delay of the implementation of digital record keeping.

Some 95% of members consider that compulsory digital record keeping and quarterly reporting will place an additional burden on their clients, while 90% of members consider that compulsory digital record keeping and quarterly reporting will place an additional burden on their practice.

A third reported that at least 75% of their clients will need to move from paper accounting records to digital records. Approximately 89% of members believe that the timeframe for implementing quarterly reporting should be extended to help businesses.

The government intends to have Making Tax Digital fully implemented by 2020.

The concerns add to the increasing pressure on the government to ease the transition to the Making Tax Digital after the Federation of Small Businesses (FSB) national chairman Mike Cherry told MPs in the Treasury Select Committee a delay of 10 years was needed for businesses to adopt digital reporting effectively.

‘We very much agree with the pathway, but over a much, much longer time that businesses can get to grips with,’ Cherry told MPs last week. ‘It is the amount of money that HMRC has been able to attract from the Treasury which is driving this, and not something that will help businesses to comply. Our members want to comply.’

CIOT tax policy director John Cullinane said taxpayers will need considerable support and guidance to avoid a major struggle to make the move to digital record keeping and quarterly reporting because the timetable is ‘unrealistically tight’.

‘There is widespread agreement that digitisation can bring efficiency and other benefits to HMRC and taxpayers alike,’ he said. ‘The government appears to be forcing the pace in the belief that requiring even very small businesses to 'go digital' in a tight timescale will transform their record keeping and reduce the tax gap, helping HMRC to recoup its investment in the project. Our survey results heighten our fears that this current aggressive approach by HMRC may have the opposite effect, with more haste meaning not just less speed, but maybe even see compliance levels go in the wrong direction.’

Co-chair of ATT’s technical steering group Yvette Nunn queried the ability for HMRC to fully consider consultation responses inside the proposed timescale.

She said: ‘All the evidence the ATT has got is that MTD will lead to significant costs and burdens for small businesses in additional accounting systems and support from their accountants. The survey shows that HMRC must help smaller businesses and those who are the most vulnerable in society to adapt to MTD.’

The full timeline to Making Tax Digital is outlined here.