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The Low Incomes Tax Reform Group (LITRG) has welcomed the announcement in the Making Tax Digital consultation documents of an exemption for many small businesses from digital record-keeping and quarterly digital reporting to HMRC, and a year’s deferral of those obligations for others.
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But campaign group, LITRG, warned that in granting exemptions in individual cases, HMRC must avoid an over-selective approach to identifying those who genuinely cannot use computers or lack access to the internet and must respect the rule of law.
LITRG also welcomed the announcement that there will be financial support for some people in the transition to digital, and hopes that among others this will assist those who would face a disproportionate cost burden by being required to keep records and report digitally; an example being those whose only purpose in investing in digital systems would be to communicate with HMRC.
LITRG Chairman Anthony Thomas said: “It is clearly right that we should make full use of digital technology to simplify and improve the tax system, and we look forward to constructive engagement with HMRC over the consultation period and beyond.
“In responding, we shall be keen to ensure that the rights of those who genuinely cannot use digital systems, for example because of excessive cost, age, disability or remoteness of location, are properly safeguarded, and that nobody should be required to struggle unduly to meet these new obligations. We trust that HMRC will take a very broad view of the digitally excluded and not be over-selective or restrictive in deciding who should benefit from the exemption.
“It is also vital that those who cannot use digital systems for their tax affairs are not left behind in terms of the quality of service and information available to them, as this could undermine trust in our tax system.”
Background
The consultations have been long anticipated, and cover the following areas:
- Bringing business tax into the digital age
- Transforming the tax system through the better use of information
- Tax administration
- Voluntary pay as you go
- Simplifying tax for unincorporated businesses
- Simplified cash basis for unincorporated property businesses
See also: The pros and cons of 'Making Tax Digital' - Shout99, Aug 2016.
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Susie Hughes © Shout99 2016
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