HMRC Is Shite

HMRC Is Shite
Dedicated to the taxpayers of Britain, and the employees of Her Majesty's Revenue and Customs (HMRC), who have to endure the monumental shambles that is HMRC.

Tuesday, 28 March 2017

Tyrie Still Doesn't Believe The HMRC MTD Hype

In February I wrote:
"Treasury Committee chairman Andrew Tyrie has written to the financial secretary to the treasury, Jane Ellison, requesting further detail on HMRC’s claim that the Making Tax Digital programme will cost only £280 per UK company to set up."

Yesterday the Treasury Sub Committee reported that Tyrie has received replies from Jane Ellison MP, Financial Secretary to the Treasury, and Mike Cherry, National Chairman of the Federation of Small Businesses (FSB), on the compliance cost of Making Tax Digital.

Chair's Comments

"There are huge differences between the FSB and HMRC about the administrative burden of Making Tax Digital. This is the heart of the matter. The FSB think that with MTD, businesses might spend three times as much time on their tax obligations as they currently do. This could cost them around £3,000 a year in time, salaries and accountants' fees. HMRC think that they will spend less time, leading to a small net saving. A comprehensive pilot should shed some light on which assumption is closer to reality.
This serves to illustrate the need for the implementation of one of the Committee's recommendations that a comprehensive pilot is needed to establish the facts, and before mandatory roll out of the digital regime. I have written to the Administrative Burdens Advisory Board to ask for a view on the basis of their members' extensive business and accountancy practice networks."
In other words, Tyrie still doesn't believe the MTD hype!

Oh, and with good reason. As Kevin Reed notes:

As an ex KPMG person myself, I don't call into question KPMG's professionalism. However, "small" to them may not cover all genuinely "small" businesses!

Tax does have to be taxing.

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1 comment:

  1. Well said Andrew Tyrie. Most business people would believe the FSB over the disgraceful HMRC (and with respect any firms on in their pay). An increase to taxpayers compliance costs is unacceptable and anti-enterprise. I would encourage traders to write to their MPs - if the Govt could U-turn over the fairly sensible NICs issue, then MTD is certainly worthy of more debate and consideration.