The government has ignored the impact its new non-dom policy will have on low and mid-income workers the Treasury committee said today as it released its report on the 2008 Budget.
Committee chairman John McFall said the government has placed 'too much focus on the very wealthy non-doms' and taken 'almost no notice' of low and middle income foreigners working in the UK.
The failure of the government to fully consider the impacts on these groups could place a substantial administrative and enforcement burden on HM Revenue & Customs.
'We have highlighted a serious risk that HMRC will be faced with the problems of potentially millions of foreign workers, either seeking advice or unwittingly in breach of the new law,' McFall said.
The committee report also fuelled anger in the Labour Party about the decision made by Gordon Brown in his last Budget in 2007 to scrap the 10p band.
The committee MPs said the main people who be hit by the change would be people who earned only £18,500 and were younger than 65. This was an 'unreasonable target for raising additional tax revenues to fund the benefits of tax simplification'.
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