Basis period TIIN: What’s the deal?
Wendy Bradley investigates what the tax information and impact note (TIIN) for the proposed change to the tax year basis period should tell us, and what we actually know.
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Blimey, could've been written by me (which at the risk of big-headed syndrome is meant to be a compliment)! An accurate demolition of the way that TIINs, like much of the rest of governmental 'measurement', are (ab)used as window-dressing - instead of their intended purpose, to test and inform prior to policy being set in stone (or issued for a consultation that omits the real options).
"What we know
The TIIN does tell us that the cost to HMRC of making this change will be between £15m and £20m."
That I struggle with
What possible cost is there to HMRC?
Taxpayers and accountants do all work
HMRC receive electronic completed tax returns
No Humans involved at HMRC end
Unlike us mere mortals, HMRC count every projected minute they spend:
* meeting to discuss the changes
* reviewing and updating documentation (internal and external)
* tweaking their software (to allow/disallow parameters of submissions) - which is of course mostly sub-contracted at ruinous rates
* 'training' their own staff (in the hope of correct advice being given to their 'clients')
* communications (aka PR with the great unwashed and if necessary with the Fourth Estate)
* all further reviews whilst the project unfurls (I nearly said unravels) - otherwise known as project maintenance - until the next re-design.
I've probably left out a few other things that they include in their costs, but I'm sure you can see how they believe that these either don't apply to the rest of us or are so insignificant when balanced against the expected benefits we will gain!
HMRC support centres are a nil cost unless they get more people
Given current low standards of service, difficult to see that that would be the case.
MTD ITSA must be costed in the (USA) Billions for service call centres if this comparatively small issue is in the Millions
of course it says that the closing of the tax gap will more than pay for the development costs.
And as for tax payers (who of course they will call 'customers' just to annoy us) it will just be a button press and the silly little refusniks will benefit from computerisation as nanny state knows better than the little people.
At which point a slurry truck will have come past, plastered the building in muck and no-one noticed given the existing reek coming off the TIIN.