The Association of Taxation Technicians (ATT) has warned of the risks to businesses and the tax take if the Government chooses to ignore many of the findings of a Treasury Committee report on Making Tax Digital.
The Chair of ATT’s Technical Steering Group, Yvette Nunn, said:
“The Treasury Committee’s report on Making Tax Digital rightly identifies that if the changes are insufficiently considered or introduced too hastily, much of the perceived benefit to the Exchequer from the programme could be squandered. Smaller businesses could cease to trade or move into the hidden economy. The mandatory imposition of an unfamiliar, expensive and burdensome system of record keeping could reduce rather than encourage good business record keeping and result in reduced tax compliance.
“We are pleased that the report notes the importance of adequate consideration being given to cyber-security issues, both in relation to the software involved and the hardware (smartphones, for example) which businesses would need to use in order to create their digital records.
“Overall, the Committee’s report provides the Government and HMRC with a timely opportunity to reflect on how the existing proposals might usefully be amended in order to achieve the win-win outcome which was originally envisaged through the combination of simplification of reporting taxable profits and improved business records.
“There is too much at risk for both businesses and the Government to ignore the Treasury Committee’s report. It should be compulsory reading for all who are involved in the introduction of the Making Tax Digital programme.”
Notes for editors
ATT submissions on MTD can be read here.
The Treasury Committee is appointed by the House of Commons to examine the expenditure, administration and policy of the Treasury, HMRC, and associated public bodies, including the Bank of England and the Financial Conduct Authority.
Association of Taxation Technicians
The Association is a charity and the leading professional body for those providing UK tax compliance services. Our primary charitable objective is to promote education and the study of tax administration and practice. One of our key aims is to provide an appropriate qualification for individuals who undertake tax compliance work. Drawing on our members' practical experience and knowledge, we contribute to consultations on the development of the UK tax system and seek to ensure that, for the general public, it is workable and as fair as possible. Our members are qualified by examination and practical experience. They commit to the highest standards of professional conduct and ensure that their tax knowledge is constantly kept up to date. Members may be found in private practice, commerce and industry, government and academia.
The Association has over 8,000 members and Fellows together with over 5,000 students. Members and Fellows use the practising title of 'Taxation Technician' or ‘Taxation Technician (Fellow)’ and the designatory letters 'ATT' and 'ATT (Fellow)' respectively.