NEW proposals to place business record keeping under scrutiny by the tax man have been described as ‘misguided’ and need to go back to the ‘drawing board’.
The Chartered Institute of Taxation slammed HM Revenue & Customs plans to escalate business record checks saying improvements are needed to record keeping but the current project will fail to achieve that.
“It’s purpose seems to be more about raising money through penalties than about helping businesses improve their systems.
“HMRC are putting forward a blunt instrument designed to deliver punishment when what is needed is a collaborative process focused on providing, education, guidance and support,” said Anthony Thomas, deputy president of the institute.
The taxman is proposing large scale record checking on before tax returns are submitted. Up to 50,000 businesses could be checked annually under the plans.
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
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