MTD for VAT raises costs for smallest businesses

Businesses using bridging software see limited benefits from Making Tax Digital for VAT while they are concerned that prices will rise

Bridging software users, who do not use fully compatible software, experienced minimal benefits as a result of Making Tax Digital for VAT. Their general view was that fully compatible software would either be overly complex and expensive for their simple requirements or not as good as their bespoke systems.

This group expressed frustration that Making Tax Digital for VAT was mandatory for them, as it was felt it was more beneficial for larger businesses.

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