Cross-border Trade and Accounting

Part of the debate – in the House of Commons at 7:00 pm on 30th October 2019.

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Photo of Luke Graham Luke Graham Conservative, Ochil and South Perthshire 7:00 pm, 30th October 2019

My hon. Friend makes a very good point. The Minister will be well versed in some of the reports and debates on Making Tax Digital. A lot of these barriers were articulated at that time. One key area will be costs. Sometimes the cost of pieces of accounting software is very low, perhaps a couple of hundred pounds or so, but for a small company it is still an additional cost. The other obstacle that customers and companies will face is knowledge of the accounting software. Even in a large multinational business, many of the executives on the board, and many of the managers, have no knowledge of their accounting system. They are only focused on simple outputs and do not necessarily know what is underneath the bonnet. With modern cars, as we all know, that often leads to more costly and more complicated servicing when the time comes. That is great news for finance directors but not such great news for operational directors.