House of Lords committee calls up HMRC chiefs to defend Making Tax Digital

Making Tax Digital will be back in the spotlight on Wednesday as sneior HMRC officials are called up to give evidence at the House of Lords committee reviewing the draft clauses of the Finance Bill 

At an earlier session, members of the finance bill sub-committee (FBSC) of the economic affairs select committee described the proposed £10,000 threshold for Making Tax Digital as ‘ridiculous’, and claimed HMRC had demonstrated ‘a complete lack of commercial reality’ in their plans.

The FBSC is looking at whether the measures proposed in the draft bill contribute to the modernisation, simplification and efficiency of the tax system and well as their impact on the compliance burden and other costs borne by taxpayers, particularly smaller businesses and private landlords.

There are two evidence sessions scheduled. On Monday afternoon, 20 February, the committee will hear from Michael Parker, head of tax at the National Farmers Union, as well as representatives of trade bodies for convenience stories and landlords.

On Wednesday afternoon 22 February, Theresa Middleton, HMRC programme director for Making Tax Digital (Business), Jim Harra, HMRC director general, customer strategy and tax design, and Lucy Pink, deputy director, tax administration spending and reform at the Treasury, will be grilled by the committee.

The committee is due to publish its report by the end of March.

The House of Lords session on 20 February starts at 2.05pm and can be viewed here

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Comments

It is a mystery to me why no one has considered making it compulsory for new business, then start-ups know where they stand, and optional for existing business, therefore if they want to be part of MTD they can.

Although, the biggest mystery is how HMRC thinks it can do this, as an agent I am used to clients vanishing from HMRC systems and having to resubmit authorisation on a semi-regular basis, will we have under MTD 'customers' vanishing also?

Given the increased burden of tax on small businesses - forced pension contributions under auto enrolment with companies who have proved they are inept incompetent and untrustworthy as Trustees with peoples pension funds, endowments and the sale of unsuitable - yet profitable products like PPI, churning and transferring by banks and insurance company tied agents - along with some restricted advisers. Yet there are no controls - much rhetoric but a lack of Corporate Governance - how can any consumer trust these organisations ?

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