WETTONE Matthews Accountants in Alton has criticised the “unrealistically tight” timetable set by the Government for digitising the UK’s tax system from next April.

The Making Tax Digital programme is at the heart of plans to make HM Revenue & Customs (HMRC) one of the most digitally advanced tax authorities in the world.

Digital technology will allow tax to be integrated into business records so that ‘doing tax’ will be easier and less costly. According to HMRC, Making Tax Digital is built on the following ‘four foundations’:

* Tax simplified – all taxpayers will receive the data and services relevant to them, and those requiring extra help will receive personalised support to suit their needs;

* Tax in one place – in the next five years, all taxpayers will be able to use their digital accounts to see a single, up-to-date and easy-to follow overview;

* Making Tax Digital for businesses – by 2020, most businesses, self-employed people and landlords will be required to keep track of their tax affairs;

* Making Tax Digital for individual taxpayers - every individual taxpayer has access to their own digital account.

But Wendy Croucher, a director at Wettone Matthews Accountants, fears the new system could catch small businesses by surprise without more support from HMRC.

She said: “Taxpayers will need considerable support and guidance to avoid a major struggle to make the move to digital record keeping and quarterly reporting because the timetable is unrealistically tight.

“There is widespread agreement that digitisation can bring efficiency and other benefits to HMRC and taxpayers alike.

“[But] the Government appears to be forcing the pace in the belief that requiring even very small businesses to ‘go digital’ in a tight timescale will transform their record keeping and reduce the tax gap.”