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.
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