Plans which will see HM Revenue & Customs (HMRC) move to a system of quarterly tax returns have encountered further resistance from the business community.
There are concerns that the tax authority’s new emphasis on digital systems, of which the new filing arrangements are part, will lead to a “substantial” increase in the administrative burden facing many companies.
The Administrative Burdens Advisory Board (ABAB) has used its annual report to outline concerns that the new regime is likely to prove more “burdensome” than the current system.
“Whilst we recognise and are supportive of the need to move to digital and the potential this brings, we are disappointed with the announcement to mandate digital record keeping and quarterly online reporting for even the smallest businesses as part of Making Tax Digital for Business,” a spokesman said.
The Federation of Small Businesses (FSB) has also made it clear that it has reservations about the requirements and fears they will “add to the cost of doing business in the UK.”
Over the past few months, HMRC has been gradually outlining its plans for a transition towards the new digital system.
But despite claims that it will make procedures more efficient, the authority has had to answer a number of questions from business bodies who have fears about the strain that the change will place on many company owners.