ABAB report disappointed by quarterly digital reporting
‘Making Tax Digital’ (MTD) may sound like a good idea but it is not without its critics and most recently the Administrative Burdens Advisory Board (ABAB) joined in that criticism in its 2016 Annual Report to the Financial Secretary to Treasury, David Gauke.
Established in 2006, ABAB is an independent board that brings together the business knowledge and expertise of business people and professionals from different backgrounds. ABAB’s primary goal is to ‘make a noticeable’ difference for small business; removing unnecessary burdens on them and simplifying the tax system. Their approach is to be an independent ‘critical friend’ to HMRC, offering constructive challenge and support.
In its report, ABAB said that it was disappointed over the announcement to mandate digital record keeping and quarterly online reporting for even the smallest businesses. They declared their surprise and disappointment when MTD was announced at Autumn Statement last year and that they were kept in the dark, particularly given their close engagement and relationship with HMRC.
Although ABAB are supportive of the move to digital they do have reservations as to whether this will meet the needs for all small businesses, together with the level of support that will be available and the pace of change. As such, compulsory digital record keeping and quarterly online updates is not an approach they feel they can endorse. They 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 significant impact on the smallest of businesses.
In the meantime, ABAB will work closely with HMRC and monitor MTD developments in the current tax year.
Service levels
The now all too familiar woeful telephone service of HMRC also received a bashing in the report. ABAB received direct feedback from over 2,000 businesses through its TELL ABAB facility and unsurprisingly a large proportion of comments related to HMRC’s channel of communications, particularly their phone lines. Their friendly advice to HMRC is to eliminate the need for so many calls through better systems, clearer guidance and enhanced access to HMRC records. In the meantime, the HMRC department must recognise that an efficient telephone service is a priority. Can you spot which two words don’t match in that sentence? That’s right HMRC and efficient!
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