Adopting electronic invoicing should be voluntary for both UK businesses and the public sector, according to leading global accountancy body ACCA (the Association of Chartered Certified Accountants).

Responding to a HMRC consultation – Electronic invoicing: promoting e-invoicing across UK businesses and the public sector – ACCA is clear that while the implementation of e-invoicing could bring a number of key benefits for business, such a move must be demand led and must not divert focus away from existing priorities such as MTD. 

Glenn Collins, Head of Policy, Technical and Strategic Engagement at ACCA, said: ‘With so much investment already having been made by software providers, taxpayers and all key stakeholders in Making Tax Digital (MTD), we would be concerned that the implementation of e-invoicing could potentially dilute already finite resources and lead to delays. 

‘We would encourage a cautious approach when considering the capacity HMRC would have to implement new developments such as e-invoicing while HMRC reforms and areas such as MTD (making tax digital) are at the early stages of phased implementation. In other words: concentrate on making MTD a success.’

In its response ACCA suggests that any e-invoicing system should adopt a decentralised ‘4-corner model’ giving independence and flexibility and would not require users to be locked into a central platform. 

Joe Fitzsimons, Regional Lead, Policy & Insights, ACCA said: ‘A voluntary system of e-invoicing designed to encourage business adoption to realise key business benefits is the most productive approach. Cost benefit analysis will remain crucial as well as considering how e-invoicing can best work for business in practice.’

‘We also call on the government to look at existing standards in countries which already use e-invoicing and take a phased approach to ensure capacity and capability can be built and crucially lessons learned.’

Read the ACCA submission here. 

– ends –

For media enquiries, contact:
ACCA News Room
E: newsroom@accaglobal.com
Twitter/X: @ACCANews
accaglobal.com

About ACCA

We are ACCA (the Association of Chartered Certified Accountants), a globally recognised professional accountancy body providing qualifications and advancing standards in accountancy worldwide.
Founded in 1904 to widen access to the accountancy profession, we’ve long championed inclusion and today proudly support a diverse community of over 252,500 members and 526,000 future members in 180 countries. 
Our forward-looking qualifications, continuous learning and insights are respected and valued by employers in every sector. They equip individuals with the business and finance expertise and ethical judgment to create, protect, and report the sustainable value delivered by organisations and economies. 
Guided by our purpose and values, our ambition is to lead the accountancy profession for a changed world. Partnering with policymakers, standard setters, the donor community, educators and other accountancy bodies, we’re strengthening and building a profession that drives a sustainable future for all. 

Find out more at: www.accaglobal.com