Mixed response
A series of new compliance approaches announced by HM Revenue and Customs (HMRC) this week has elicited a mixed response from the Professional Contractors Group (PCG).
Prior to this, HMRC had published a consultation document, “Modernising powers, deterrents and safeguards”, to which PCG had responded in June.
PCG’s policy officer John Kell said, “We welcome HMRC’s stated aim to cut down on bureaucracy for taxpayers, their agents and the Government, and its willingness to consult stakeholders like PCG about modernising the powers of HMRC.”
No sign of the promised Lighter Touch
“We support the principle of reducing the burden on small businesses,” he continued, “but are very concerned that the proposed new approaches to contacting taxpayers do not seem to offer the promised ‘lighter touch’. If anything, they appear somewhat heavy-handed, as we wrote in our response to HMRC’s consultation.”
Kell voiced his disagreement with one of the six proposed approaches that would unduly give authority to tax inspectors to change people’s tax returns without having to justify their action, placing the burden of proving that they do not owe the extra tax involved on the taxpayer.
He also said that this and some other approaches could be applied very unfairly.