Lean, but maybe not quite so mean! David Bradshaw, tax partner at national accountancy and business advisory firm Baker Tilly, explains how HM Revenue and Customs is smartening up its act
NEWS that Lord Carter has withdrawn his proposal to bring forward the deadline for online filing of self assessment tax returns is to be welcomed. This follows vehement opposition to the suggested changes from tax advisers across the UK.
Speaking at an industry symposium in July, Lord Carter said he had considered evidence presented by the ICAEW and seven other professional bodies and would recommend no change to the present January 31 deadline for returns filed online but would propose a new filing date of October 31 for paper returns.
Taxpayers and their agents should be delighted that they will not now be subjected to an unrealistic and difficult timetable.
The onus is now on HM Revenue and Customs (HMRC) and its technology partners to produce a system which is technically robust and reliable enough to handle online filing. It also has to have the capacity to cope with the expected high peak volumes of submissions.
But deadlines are not the only issue. We must not forget that the Carter Report dealt with online filing and HMRC efficiency in general and there are a large number of issues that HMRC will have to address in advance of online filing.
For example, the Report has highlighted how Revenue and Customs should aim for:
· Simple efficiency in its processes;
· A reduction in the delays and frustrations which afflict HMRC's 'customers', namely the taxpayers;
· Improvements in the quality of tax compliance by developing a spirit of co-operation and support towards taxpayers who set out honestly to meet their
obligations.
However, it appears that the seeds of HMRC's good intentions are already being sown. A series of measures making it easier for taxpayers to comply with their tax responsibilities have just been unveiled.
At selected locations around the UK, HMRC has announced it will explore 'lighter touch approaches to tax enquiries'.
The more issues that are addressed before online filing becomes the norm, the easier it should be for HMRC to make its systems work.
David Bradshaw can be contacted on 0121 214 3100