Plans to digitise all tax-related accounting is due to be phased in from 2018 onwards, but rural businesses and farmers have criticised the plans.
Farmers have said the HM Revenue and Customs (HMRC) initiative to make tax digital will be difficult for businesses in the countryside without fast and reliable broadband.
They have also warned that poor digital connectivity in rural areas and no plan from HMRC to undertake comprehensive user testing of the new system could throw the rural economy into chaos.
Commenting on a recent Select Committee report on the subject, Andrew Tyrie MP, Chairman of the Treasury Committee, said: “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.”
'Without fast and reliable broadband'
CLA President Ross Murray said the Committee’s recommendations echo farmers' and rural businesses own worries over Making Tax Digital.
“Acknowledgement 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.
Mr Murray concluded: “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.”
