The ICAEW nails the issue with HMRC's Making Tax Digital (MTD)
Namely, as I have already noted on this site, it is currently being designed around what will
work best for HMRC and not around the needs of taxpayers.
In its response to the six MTD
consultation documents published in August, the ICAEW tax faculty makes
it clear that it supports the move to a digital tax system in principle.
However, any digital system has to be “designed as a taxpayer-centric
system”.
“Taxpayers,” it says, “should not be
disadvantaged as compared to the current tax system and it is important
that safeguards are built in to ensure this is the case.
“The move to MTD should be driven by
business adopting it because it is cheaper and more efficient not
because they are compelled to do so.”
It is clear that the costs of MTD to taxpayers, and in particular
businesses, have not been identified in anything like sufficient detail
to justify this change
Currently, it says, the proposals seem
to be designed for HMRC’s convenience, “with taxpayers and their agents
largely expected to fit around the proposed system”.
“However, we believe that the costs to businesses of MTD are far higher than suggested. Taxpayers are being asked to fund a £1.3bn investment that will cost them somewhere between £3bn and £7bn to implement, with ongoing costs on top of that."
Tax does have to be taxing.
Professional Cover Against the Threat of Costly TAX and VAT Investigations
Insurance to protect you against the cost of enquiry or dispute with HMRC is available from several sources including Solar Tax Investigation Insurance.
Ken Frost has negotiated a 10% discount on any polices that may suit your needs.
However, neither Ken Frost nor HMRCISSHITE either endorses or recommends their services.
What is Solar Tax Investigation Insurance?
Solar Tax Investigation Insurance is a tax-fee protection service that will pay up to £75,000 towards your accountant's fees in the event of an HM Revenue & Customs full enquiry or dispute.
To find out more, please use this link Solar Tax Investigation Insurance
HMRC Is Shite (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"
Unfortunately, everything HMRC does is what is best for the institution of HMRC and it would appear, what is in the best interest of the career advancement of their senior managers - think of a few lines on the CV saying how a great 'digital project' was superbly 'delivered' on a budget (no need to mention its failure or otherwise, that's apparently just a minor detail as they climb the senior civil service ladder).
ReplyDeleteOne of the issues is that a small number of senior civil servants move around the top departmental jobs in government without an experienced understanding of what its all about - 'Dame' Lin Homer admitted not being a tax expert when at HMRC, likewise her HMRC successor Mr Thompson is no more expert at tax than he was expert with military matters when at the MOD. The recruitment is all wrong. They would say their brought in for their 'leadership' talents but I am certain people with at least equal 'leadership' abilities and with a background within the Department might feel overlooked.
Unless or until more taxpayers, accountants and business representative organisations complain to their MPs in large numbers then HMRC will carry on regardless I fear.