Lord Carter of Coles - Report on Online Services
April 06
Lord Carter's report "Review of HMRC Online Services" was published this month.
Amongst its many recommendations we have highlighted comments on the filing of Self-Assessment Tax Returns - makes for interesting reading!
First the bad news.
It is proposed that from 2007-2008 the filing period for paper returns should be reduced to 6 months - the deadline will therefore be the 30 September. The filing period for online returns should be reduced to 8 months - the deadline being 30 November.
At present the filing period for all SA returns is 10 months, the 31 January following the tax year end.
If adopted this will have a radical impact on the speed with which information is collected and processed. For instance if you are self employed and have a 31 March year end we will have just 6 to 8 months to prepare your accounts, and prepare and file returns with the Revenue.
Now the good news.
The report recommends that the period the Revenue have to query your SA return, and most company returns, the "enquiry window", should be linked to the date the return is submitted, and not the filing deadline.
For instance whenever you file your 2006 tax return, assuming it's before the 31 January 2007, HMRC will have up to one year from 31 January 2007 to query your return. Under the new proposals from 2007-2008 the "enquiry window" will be reduced to 1 year from the date you file the return.
It is hoped that this will help to promote earlier filing of returns and close the "enquiry window" sooner.
Summary
Eventually it is likely that all returns will be filed electronically. Certainly Lord Carter is of the opinion that e-filing should be encouraged. It is best to be prepared. We will monitor the situation and advise you of practical changes that we may need to make to ensure your returns are filed in good time.
