Huwebes, Abril 7, 2016

HMRC Digital tax returns criticised by ABAB

Government plans to make small businesses submit quarterly digital tax returns have been criticised by independent overseeing HMRC body, the Administrative Burdens Advisory Board (ABAB).

In its annual report, the ABAB refused to back the plans, saying: “compulsory digital record keeping and quarterly online updates is not an approach we can endorse.”

The ABAB said it has “reservations” around whether software currently being used by businesses would able to meet HMRC’s demands and also “the appetite amongst small businesses to utilise them”.

The body highlighted concerns that the mandatory quarterly updates would provide an extra financial and administrative burden on small businesses: “We are concerned that the proposals for quarterly updates will be more burdensome than they currently are with increased record-keeping and compliance costs. This will have a big impact on the smallest of businesses.”

The Federation of Small Businesses (FSB) has backed the ABAB’s stance on the issue, with Mike Cherry, FSB National Chairman, commenting: “Forcing small firms to pay for expensive digital accounting software so they must submit extra tax returns is not going to help anyone. It will simply add to the cost of doing business in the UK. These proposals will also substantially increase administrative burdens – particularly for the smallest businesses.

“When every independent body and expert is lining up to tell you to stop, slowdown and think again, it might be time to take a breather and listen to their concerns.”

The FSB has advised its members to highlight the impact the new measures would have on their business and urged the government to make the move only on a voluntary basis.

The ABAB also criticised Chancellor George Osborne’s decision to announce the policy in his 2015 Autumn Statement. The body commented: ““We were surprised and disappointed when this was announced at Autumn Statement, particularly that given our close engagement and relationship with HMRC we were not informed of the intentions earlier.”

The post HMRC Digital tax returns criticised by ABAB appeared first on UK Construction Online.


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