Amazingly, preparing accounting data for the tax man costs money

Even in the case of a simple business these tasks may well take half a day to complete. They may take much longer in a larger business. That is why I call the HMRC impact assessment incompetent.

Third, I wondered how anyone failed to notice that this estimate was so bad before the report was issued? Or did they notice and it went out anyway?

This from the man who insists that country by country reporting will impose no costs upon business.

10 comments on “Amazingly, preparing accounting data for the tax man costs money

  1. Stopped clock and all that, but he is generally right about MTD.

    Utter retarded spastickry (or whatever the word is).

  2. There is a point that regulatory impact assessments and better regulation reviews regularly use the cost to the government rather than cost to citizen. This under estimates the cost of complexity and, even worse, shows the cost of forcing bureaucracy on the citizen or companies can be seen as positive.

  3. I’m actually impressed. This is his first decent post.

    The tragedy is that Ritchie has cried wolf so many times before, that nobody will pay attention even though he has actually spotted a wolf.

  4. Aah but there is a big difference here Tim. cbc us HIS idea don’t you know. Therefore there are no coats, no costs at all. By contrast MTD is from the people who refused to give him the big job he believes is his right. And whose leaders despise him with a passion. Therefore he seeks every opportunity to do them down. It’s exactly like his discovery that Corbyn and McDonnell are no good.

    In fact everything he writes is a rehash of somebody else’s work. He’ll claim it as his own though.

  5. “I’m actually impressed. This is his first decent post.

    The tragedy is that Ritchie has cried wolf so many times before, that nobody will pay attention even though he has actually spotted a wolf.”

    The difference this time is that he is having things imposed on him that he doesn’t like, when he pronounces on all and sundry he imagines himself imposing things on other people, a far more appealing scenario to a man of his tastes.

    Never forget that to the Leftist the actual policy is less attractive than the prospect of having someone squirming (even literally) on the end of their hook.

  6. Dear Mr Worstall

    The essential fact is that the time cost of the government’s livestock is zero.

    Complicated tax systems which waste taxpayers’ time are features, not bugs, with the added bonus that when taxpayers misinterpret the rules they can be soundly thrashed and taxed some more by their ever loving, benevolent government.

    As observed, that nice P. Murphy ordinarily seems to think this is a Good Idea.

    Maybe he has seen the light?

    MTO? MTU?*

    DP

    * Make tax optional. Make tax unlawful… oh, isn’t it already?

    What is the difference between government and organised crime? One is illegal, but neither is lawful.

  7. I agree with PF and AndrewM. Probably Ritchie’s best offering, and there have been so many that a few random ones have previously swum above the tide over the last decade. The principle that compliance is incident on the business is right, and the arithmetic looks reasonable to a first order.
    Imv, of course.
    A couple more opinion pieces in a similar vein and we’ll be labelling him as consistent.

  8. Although, as ever, his lack of practical tax knowledge is revealed. In the comments he refers to the limit for three line accounts in tax returns as being £30k turnover. It is actually The VAT threshold, which is over £80k.

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