Luton Outlaws - Independent Message Board for Luton Town FC

HMRC seems to think that making people keep records electronically and submit them quarterly is going to reduce the "tax gap" (which, by definition, is a guesstimate). They claim that it is going to make records more accurate and ensure that people pay the right amount of tax. Mistakes have increased massively. Also, most people don't forget to include their income (if they are deliberately not declaring it, using a computer program won't suddenly make them declare it) - by submitting quarterly, they are more likely to remember expenses that they would have forgotten about by the end of the year. This means that tax collected will reduce.

There are numerous errors that I (and other accountants) am seeing which mean that people are underpaying tax due to the introduction of Making Tax Digital.

Also, they tend to chase those who are a few weeks late paying a small amount whereas others who owe tens of thousands of pounds are ignored. Surely, it is easier to chase someone who owes £40000 than chasing eighty people who owe £500 each.