The Treasury Select Committee has backed CLA calls for a rethink of key aspects of proposals to push more companies into managing their tax accounts online.
Commenting on the report, CLA President Ross Murray said: “The Committee’s recommendations echo our own worries over Making Tax Digital so acknowledgment of those areas is very welcome, particularly in agreeing with a delay to the project and piloting the system to ensure small rural businesses are given a fair chance to comply.
“We raised concerns over the way the project might be rolled out as it would be difficult for businesses in the countryside without fast and reliable broadband to comply by the 2018 start date. The Government must reassure rural businesses they will not be unfairly penalised as a result of poor connectivity when trying to complete and submit tax information online.
“Consulting with rural businesses on the timescale and cost implications of the project if the free software available is not suitable for farm businesses or partnerships, and implementing in phases will help the Government ensure tax compliance is achieved and avoid throwing the rural economy into chaos.”