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Administrative Burdens Advisory Board (ABAB)

25th May 2016
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The board was set up in 2006 to be an independent board that brings together the business knowledge and expertise of business people and professionals from all sorts of backgrounds supporting HMRC.

Their primary goal is “To make a noticeable difference” for small business removing unnecessary burdens on them. Their stated approach is to be an “Independent critical friend to HMRC offering constructive challenge and support” and they use the phrase “tell it like it is” to describe their dealings with HMRC.

So HMRC’s critical friend set up to support government promises to make the tax system easier whilst cutting costs with a range of worthy and influential business people as members would be one of the first group you would look to for input on making the tax system digital based including the need for quarterly reports wouldn’t you?

Well not if you are the present HMRC because this is what the ABAB said in their 2016 report: “We were surprised and disappointed when this was announced at Autumn Statement, particularly that given our close engagement and relationship with HMRC we were not informed of the intentions earlier” Which is actually more CRITICAL than FRIENDLY I’d say

So what was the view of HMRC’s friend regarding MTD?

This is what they have to say “This brings us to Making Tax Digital for Business. As started previously we are very supportive of the move to digital but have reservations as to whether this will meet the needs of all small businesses, together with the level of support that will be available and the pace of change. Therefore compulsory digital record keeping and quarterly online updates is not an approach we can endorse” Bad enough or should I say critical enough but there is more ”We are concerned that the proposals for quarterly updates will be more burdensome than they currently are with increased record keeping and compliance costs. This will have a big impact on the smallest business.”

So to the members of the ABAB I say you might want to pick your friends better and to the board of HMRC I say if even your friends don’t like something maybe you had better think again.

This blog is taken from the ICPA website. Dedicated to supporting and promoting the needs of the general practitioner. You can find us at www.icpa.org.uk or email [email protected] or phone 0800-074-2896.

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