Andrew Tyrie, chair of the House of Commons Treasury committee, has highlighted the ‘huge differences between the Federation of Small Businesses and HMRC about the administrative burden of making tax digital’.
‘The FSB thinks 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. [Whereas] HMRC thinks that they will spend less time, leading to a small net saving.’ Tyrie said the difference in view illustrates the need for a comprehensive pilot to establish the facts before mandatory roll out of the digital regime.
Tyrie has also written to the Administrative Burdens Advisory Board to ask for its view on the matter. The ABAB is an independent body established in 2006 to act as ‘critical friend’ to HMRC and provide the department with insight on making tax simpler for small business.
Andrew Tyrie, chair of the House of Commons Treasury committee, has highlighted the ‘huge differences between the Federation of Small Businesses and HMRC about the administrative burden of making tax digital’.
‘The FSB thinks 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. [Whereas] HMRC thinks that they will spend less time, leading to a small net saving.’ Tyrie said the difference in view illustrates the need for a comprehensive pilot to establish the facts before mandatory roll out of the digital regime.
Tyrie has also written to the Administrative Burdens Advisory Board to ask for its view on the matter. The ABAB is an independent body established in 2006 to act as ‘critical friend’ to HMRC and provide the department with insight on making tax simpler for small business.
