The government should delay the launch of Making Tax Digital (MTD) until 2020 and make the scheme optional for many small businesses and self-employed people.

These are among the recommendations made by the House of Lords’ Economic Affairs Committee in its report on MTD for business. The committee concludes the roll-out of the scheme is being rushed; small businesses will face unnecessary burdens and the government will benefit only marginally.

Too little consideration has been given to support those lacking digital skills: HMRC’s own research shows that 61% of the self-employed cannot or need help to interact with the government online.

The committee agrees that the digitalisation of tax is to be welcomed, but recommends a series of modifications to ensure the policy is implemented successfully.

The government should revise and improve its assessment of …