The move to automate invoicing is seen by the government as a major opportunity to improve business productivity, cash flow and reduce administrative burdens, but it will raise costs for business, with software requirements and compliance issues, not to mention staff training and system changes.

It is still early stages for the plans and the consultation does not set out the cost implications for businesses if this was to become mandatory, or any suggestions about timing. The 34-question consultation can be completed online and once the 12-week feedback session closes, it is likely that the government would feedback its views by the Budget this autumn.