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1227867
registered interest false more like this
date less than 2020-07-23more like thismore than 2020-07-23
answering body
Treasury more like this
answering dept id 14 more like this
answering dept short name Treasury more like this
answering dept sort name Treasury more like this
hansard heading Taxation: Electronic Government remove filter
house id 2 more like this
legislature
25277
pref label House of Lords more like this
question text To ask Her Majesty's Government whether the Making Tax Digital programme has been introduced due to reductions in the HMRC workforce. more like this
tabling member printed
Lord West of Spithead more like this
uin HL7265 remove filter
answer
answer
is ministerial correction false more like this
date of answer less than 2020-07-30more like thismore than 2020-07-30
answer text <p>The Government understands that some people with disabilities, those in rural locations with poor broadband services, and those who are digitally excluded for other reasons may find it more difficult to comply with Making Tax Digital (MTD) requirements. MTD exemptions have operated successfully since the introduction of MTD for VAT in April 2019 for businesses with taxable turnover in excess of the VAT threshold. These exemptions will continue to be available to businesses within the expanded scope of MTD.</p><p> </p><p>There will be no specific allowances or payment made to those using MTD for time spent complying with MTD requirements. However, the Government accepts that there will be time spent in familiarisation with the new MTD obligations (digital record keeping and quarterly submission of information). The Lloyds Bank UK Consumer Digital Index 2019 found that those who are the most digitally engaged save a day a week in administration by going digital. Once businesses are used to operating the new MTD processes, the Government anticipates that they will find that MTD makes it easier for them to get things right, reducing errors and saving time in administering their tax affairs.</p><p> </p><p>MTD is not a response to any changes in HMRC workforce. It is a key part of the Government’s long term goal for HMRC to become one of the most digitally advanced tax authorities in the world, and forms part of the Government's 10-year strategy to build a trusted, modern tax administration system. As well as helping to tackle the part of the tax gap arising due to error and failure to take reasonable care, MTD will help to make the tax administration system more resilient and effective in responding to future shocks, while also providing businesses with access to real-time data and a more accurate overview of their financial position.</p><p> </p><p>The Government will not be funding specialist software or training, but will continue to work to ensure that any additional costs to business are minimised. Free Income Tax software will be available for businesses with the simplest tax affairs. For VAT, there are already over a dozen free packages available as part of a highly competitive market with over 500 products for different business needs. On training, the HMRC customer support model includes a multi-layered approach stretching across agents, third party software support, through to telephony support, webchat, and HMRC’s Extra Support service, as well as signposting to information and guides and to local or third party providers of digital skills courses or support already offered by external providers.</p><p> </p><p>For those with slow speeds and no access to other commercial alternatives, the broadband Universal Service Obligation (USO) came into force in March 2020. The USO gives people in the UK the right to request a decent and affordable broadband connection. The Government has pledged £5 billion to support the rollout of gigabit-capable networks to the hardest to reach 20% of the country.</p>
answering member printed Lord Agnew of Oulton more like this
grouped question UIN
HL7263 more like this
HL7264 more like this
HL7266 more like this
HL7267 more like this
question first answered
less than 2020-07-30T12:13:24.15Zmore like thismore than 2020-07-30T12:13:24.15Z
answering member
4689
label Biography information for Lord Agnew of Oulton more like this
tabling member
3834
label Biography information for Lord West of Spithead more like this