The FSB has estimated the cost of MTD at around £2,770 per annum per business.
THE DIGITALISATION of tax returns will impose significant additional tax compliance costs on small businesses for little or no medium term benefit, tax and small business experts told MPs on the Commons Treasury Committee. HMRC is consulting on the Making Tax Digital (MTD) project until 7 November. The project, which will impose quarterly digital tax reporting upon SMEs, has “possibly very adverse implications for hundreds of thousands of small businesses,” committee chair Andrew Tyrie (pictured) said. ACCA head of taxation Chas Roy-Chowdhury said that while businesses with tax agents are aware of MTD, smaller businesses “probably have no idea whatsoever what’s going to come down the track”. He questioned how MTD would benefit businesses given that tax agents will be engaged five times a year instead of once.