The Government\u2019s hotly-contested Making Tax Digital (MTD) project is now facing fresh criticism over its proposed \u00a310,000 a year exemption threshold, above which businesses and self-employed individuals will need to report to HM Revenue & Customs (HMRC) on a quarterly basis.<\/p>\n
This time, the comments come from the House of Lords economic affairs committee, which has labelled the threshold \u201cridiculous,\u201d according to reports.<\/p>\n
Lord Bilimoria, founder and chairman of Cobra Beer, said that he supported calls from tax and business bodies for the Government to raise the exemption threshold to match the current VAT threshold of \u00a383,000.<\/p>\n
Speaking to the committee, he said: \u201cI put my cards on the table, I\u2019m not a fan [of Making Tax Digital].<\/p>\n
\u201cNobody in a smaller business can imagine how this can be user-friendly. This will increase the error rate. People who have to create accounts in a short space of time make a lot more errors than those who don\u2019t,\u201d he added.<\/p>\n
Lord Billimoria said that HMRC\u2019s proposals represented a \u201ccomplete lack of commercial reality\u201d and that its proposed MTD exemption threshold was \u201cridiculous\u201d.<\/p>\n
He also criticised the Government\u2019s plans to begin phasing in MTD for landlords and sole traders first, followed by larger businesses shortly afterwards.<\/p>\n
He said: \u201cI would suggest we start with companies and end up with the smallest businesses, rather than the other way [around].<\/p>\n
\u201cWe\u2019ve got the wrong direction of travel on implementation\u201d.<\/p>\n","protected":false},"excerpt":{"rendered":"
The Government\u2019s hotly-contested Making Tax Digital (MTD) project is now facing fresh criticism over its proposed \u00a310,000 a year exemption threshold, above which businesses and self-employed individuals will need to report to HM Revenue & Customs (HMRC) on a quarterly basis.<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"_links":{"self":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/1713"}],"collection":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/comments?post=1713"}],"version-history":[{"count":1,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/1713\/revisions"}],"predecessor-version":[{"id":1714,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/1713\/revisions\/1714"}],"wp:attachment":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/media?parent=1713"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/categories?post=1713"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/tags?post=1713"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}