THE Federation of Small Businesses (FSB) is welcoming a report from an influential House of Lords committee which calls for a delay in the launch of the Government’s Making Tax Digital programme until 2020.

The cross-party economic affairs finance bill-sub committee has also recommended that the smallest and most vulnerable businesses are exempt from plans to force companies to report on a quarterly basis.

Brian Woods, regional chairman of the Federation of Small Businesses, said: “[The] cross-party report from the House of Lords backs FSB’s proposals to make the Government’s Making Tax Digital programme work. A delay to 2020 would give hard-pressed businesses time to get their systems ready, and a higher exemption threshold would take out those that are going to be struggling the most with this change.

“In addition, we want to see a more comprehensive impact assessment as more details of the scheme become clear.”

The report comes after the treasury select committee warned in January that the programme “could be a disaster” for small firms.