When confronted by the issue of Making Tax Digital (MTD) a client of mine asked what the penalties would be for non-compliance. Their point was that they would submit the information from spreadsheet (via bridging software) on time but the underlying records would still be paper based. The numbers would be correct and on time and in the correct format but in breach of the detailed rules (and the entire spirit of MTD). They argued that it might be cheaper to do this and suffer a penalty than to suffer the cost of new computers, new software, training and and additional time.
I had no answer. Does anybody have any views on such an approach?