My Lords, this amendment would require a one-off administrative and compliance costs review to take place six months after the employment allowance comes into force. We are using this amendment to ask questions about the 10% of businesses that the Government think will not claim the employment allowance, and to explore ways in which they might be engaged more successfully. We are asking whether the guidance will be available in sufficient time for people to get their software ready.
The Minister’s colleague in the Commons indicated that the necessary changes to software and the pressure on businesses, particularly small businesses, would be
challenging. Evidence received by colleagues in the other place suggested that normally three to six months is required for systems to be developed, including time for specification and documentation of the changes, development, testing and release to clients. That cannot be started effectively until it is known what is expected.
The indications were that the guidance would be ready early in the new year—in January. Will the Minister update the Committee on where we are? We believe that there has been some slippage from that optimistic date. Will the system be available in sufficient time for the response that we all want to see? A review would enable us to check six months on that software-type issues or unexpected administrative costs have been ironed out and dealt with. That would give the Government an early opportunity to rectify what needs to be changed.
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Here again, we are aware that it is important for HMRC to communicate with interested groups and gauge their view of the employment allowance. It was also said in the other place that the employment allowance would be very easy to claim. Easy for government often looks a good deal more difficult at the other end. I want the Minister to flesh out that point and to indicate that arrangements are in hand and on time to render this amendment unnecessary. The amendment reflects our anxieties.