With public spending set to rise by 13.4% over the next four years but the economy predicted due to grow only 10.75%, the Treasury will be left with a £25billion shortfall by 2007/08.
Numerica chief economist Maurice Fitzpatrick said this shortfall is the equivalent of 8p on the standard rate of income tax.
‘For the Treasury’s figures to add up, there has to be a significant increase in the amount of tax raised,’ he said.
‘The Treasury have yet to explain how this will come about.’
However, the Treasury hit back by claiming that Numerica had not taken into account extra tax receipts generated by economic growth.
Making Tax Digital will impose significant additional tax compliance costs on small businesses for little or no medium term benefit, tax and small business experts told MPs
MHA MacIntyre Hudson has partnered with cloud accounting software provider Xero ahead of the government’s requirement for digital records
The drive towards a fully digital tax regime is an admirable one, but mandation is simply wrong, according to one of the UK's most senior tax technology practitioners - Paul Aplin
Does Darwin's theory apply to taxation? Colin ponders...