Lord Livermore, financial secretary to the Treasury, has faced criticism in the House of Lords as he defended the government’s plans to roll out MTD for Income Tax next April.

In a tax debate on MTD and its impact on the development of new digital services at HMRC, different speakers grilled the minister on whether the plans were a cost cutting exercise, would add pressure to already overloaded helplines and increase red tape for the self employed and landlords.

Baroness Kramer, a Liberal Democrat peer, said: ‘Making Tax Digital is not targeted at upskilling self-employed people and landlords; it is about cutting costs at HMRC.

‘The requirements have led to a surge in calls to HMRC for guidance… How is this being handled, given that people who fail to comply face steep fines and penalties, and that when they rely on the internet they are at risk of being scammed.’

The