Plans to roll out quarterly reporting under Making Tax Digital will raise admin and compliance costs but businesses are facing up to the reality of the overhaul in tax reporting requirements. Bill Dodwell, partner and head of tax policy at Deloitte, considers potential pitfalls, particularly with one-off payments
The government has announced its latest decisions on the huge Making Tax Digital for business project (known to HMRC as MTDfB), which interestingly accompanied some research commissioned by HMRC from market researcher Jigsaw on the project.
Jigsaw conducted qualitative research in February to March 2016. The main finding demonstrates what a law-abiding country this is, stating that ‘overall resistance to Making Tax Digital for business is limited; businesses expect to comply with requirements.
'However, Making Tax Digital for business is not an 'easy sell'; the majority of businesses do not welcome what initially appears to be an increase in their tax related obligations and the disadvantages of Making Tax Digital for business are more immediately apparent than the potential benefits’. The report summarises the outlook as a ‘somewhat resentful level of resignation’.
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