FOR IMMEDIATE RELEASE
HMRC quarterly tax returns slammed
Independent HMRC oversight body, the Administrative Burdens Advisory Board (ABAB), has refused to support the Government’s plans to force small businesses to submit quarterly digital tax returns saying: “compulsory digital record keeping and quarterly online updates is not an approach we can endorse.”
The ABAB has used its annual report to underline “significant concerns” shared by the Federation of Small Businesses (FSB) that, “the proposals for quarterly updates will be more burdensome than they currently are with increased record keeping and compliance costs.”
The stark criticism from the ABAB adds to growing concerns about HMRC’s plans to mandate smaller businesses to move to the untested digital tax returns platform. The ABAB report highlighted “reservations around the current capability of software being able to deliver HMRC’s vision and the appetite amongst small businesses to utilise them.”
The ABAB was also very critical of the decision to announce the policy without consultation or warning in the 2015 Autumn Statement, saying: “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.”
Mike Cherry, FSB National Chairman, said: “The writing is on the wall as more and more small businesses are making clear their concerns about this poorly thought out plan. 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.”
FSB is asking its members to outline the real impact these proposals will have on their businesses to illustrate to Ministers the problems this will cause. FSB urges the Government to ensure any move towards quarterly tax reporting is strictly on a voluntary basis.
Notes to Editors
1) The Administrative Burdens Advisory Board (ABAB), ABAB Annual Report 2016, 05 April 2016
About the FSB
As experts in business, FSB offers members a wide range of vital business services, including advice, financial expertise, support and a powerful voice in Government. Its aim is to help smaller businesses achieve their ambitions. More information is available at www.fsb.org.uk. You can follow us on twitter @fsb_policy.
Area Administrator - North & Midlands
The Federation of Small Businesses is the UK's largest campaigning pressure group promoting and protecting the interests of the self-employed and owners of small firms. Formed in 1974, it now has around 200,000 members across 33 regions and 188 branches.
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