The Government’s proposed changes – to make businesses submit accounts online every quarter – will affect 1.6 million companies, 2.4 million self-employed individuals and 900,000 residential landlords.
But the report, published by the Daily Mail, said the scheme’s rollout is being rushed, and will impose unnecessary burdens on small firms and yield little benefit to the Government.
The changes coincide with others to small company taxation, such as to business rates.
The report said not enough consideration had been given to support those lacking digital skills. Revenue & Customs’ own research shows that 61 per cent of the self-employed cannot or do not interact with the Government online.
The Lords said the Government should revise its assessment of the scheme’s benefits and costs.