‘Carefully introduced, the digitisation of tax records and reporting (MTD) can be an opportunity greatly to improve the administration of the tax system for the long term. Without sufficient care, MTD could be a disaster. Implemented carefully, with long transitional arrangements where necessary, and, having drawn on information from fully inclusive pilots, Making Tax Digital could be designed for the benefit both of the economy and of the tax yield. But with a rushed introduction, it will benefit neither’.

The Committee has identified a number of serious shortcomings with current plans:

1. 
   The costs and administrative burdens for very small businesses. Andrew Tyrie said: ‘the consequent risk that many may go out of business or …