While Iris Accountancy Suite Autumn 2017 – the first piece of Making Tax Digital-compliant software to market – will come with the option for clients to take part the tax authority’s early adopter programme, no decision has been made on whether the company will offer free software.

HMRC has repeatedly stated that software developers will offer free-at-the-point-of-use Making Tax Digital-compliant software.

Sion Lewis, CEO at IRIS Accountancy Solutions, said in a press briefing: ‘It’s an expensive business running a software company, and speaking to some of the other vendors I’m not sure they want to [provide free software].

HMRC itself will not be releasing any software itself, and as such is reliant on the existing accountancy software market to provide compliant software along with some free packages for those who could otherwise be excluded.

‘We do have a history of that economic model working,’ Lewis said. ‘We did it with Payroll, you could use free Payroll for a while, so we’ve got examples of freemium working. But it’s certainly not a live discussion at all. What’s high up our agenda is being compliant, I can’t tell you how much urgency there is on that. It’s a weekly topic.’

According to research released by Iris accompanying its software, more than four fifths (83%) of 285 accountancy practices surveyed believe when MTD legislation is implemented it will increase their workload. However, 42% feel it will help grow their practice.

Lewis added: ‘The industry is right in the middle of the biggest change we have seen for decades. However, with the disruption comes opportunity. Technology will ensure compliance and legislative changes can be fully automated and with growth in areas such as self-service apps, the efficiencies gained will enable professionals to provide much needed senior guidance - simplifying their lives so they can focus on attracting new clients and growing their businesses.’

Report by Calum Fuller