A Lords committee has called for a delay of at least one year to the mandatory rollout of Making Tax Digital for VAT, asserting that HMRC has neglected its responsibility to support small business and claiming costs will be far more than the government’s impact assessment. In an excoriating report published today, the House of Lords Economic Affairs Committee laid out its concerns about the impact of the government’s Making Tax Digital for VAT plans. The committee called for a delay of least one year for the government’s digital VAT regime, currently scheduled to roll out in April 2019. It also asked for a “staged transition” for businesses joining MTD for VAT, and requested that the government wait until at least April 2022 before extending the scheme to other taxes to learn from the VAT implementation. Criticisms levelled by the Lords included low levels of awareness from affected businesses, the cost of MTD compliance, difficulty in navigating the software market, the justification for the programme and the underlying assumptions behind it.