Final piece...?
We've seen the ministerial statement to be issued today from Dawn Primarolo, which accepts, on the government's behalf, the new recommendation by Carter that the deadline for paper returns should be 31 October from 2008, but that there should be no change to the deadline for online returns. The key bit reads:
'Having reviewed his earlier findings, [Lord Carter] has now recommended that, for 2007-08 and subsequent returns, the filing period for paper returns should be reduced to seven months - the new deadline should be 31 October - and the filing period for online returns should remain at ten months - with a deadline of 31 January. He has also suggested that HM Revenue and Customs officials should work with practitioners to explore how in future the practical difficulties in collecting data earlier might be overcome so that taxpayers can complete their returns sooner if they wish. The Government has accepted Lord Carter's revised recommendation. This updating of the Self Assessment system takes account of both the views of tax professionals and the operational requirements of HM Revenue and Customs.'
Yes, yes, so this was a model of how consultation should take place...? I think not. And it would have been helpful if they had also confirmed that the enquiry window would be changing to twelve months from submission, though presumably the point is that this hasn't changed from 'Carter Mark I'.
More interestingly, what is that comment about working together in the future so taxpayers can complete returns earlier 'if they wish'? That could be very helpful; one of the issues identified in the responses was that most returns could not be started until July at the latest. There was a question raised at the Wyman symposium as to whether the PAYE end of year procedures were now appropriate to a largely online system.
However, it was also clear that Lord Carter was not actually convinced that the deadline could not be shortened, he simply accepted that it was going to overshadow the whole e-agenda if it was forced through. Joint work to get clients to submit their information earlier will be good for both HMRC and advisers, but it is to be hoped that we don't have to fight this battle all over again in five years time. Looking at the statement positively, though, the phrase 'if they wish' is very helpful, and represents - in our view - the way forwards.
'Having reviewed his earlier findings, [Lord Carter] has now recommended that, for 2007-08 and subsequent returns, the filing period for paper returns should be reduced to seven months - the new deadline should be 31 October - and the filing period for online returns should remain at ten months - with a deadline of 31 January. He has also suggested that HM Revenue and Customs officials should work with practitioners to explore how in future the practical difficulties in collecting data earlier might be overcome so that taxpayers can complete their returns sooner if they wish. The Government has accepted Lord Carter's revised recommendation. This updating of the Self Assessment system takes account of both the views of tax professionals and the operational requirements of HM Revenue and Customs.'
Yes, yes, so this was a model of how consultation should take place...? I think not. And it would have been helpful if they had also confirmed that the enquiry window would be changing to twelve months from submission, though presumably the point is that this hasn't changed from 'Carter Mark I'.
More interestingly, what is that comment about working together in the future so taxpayers can complete returns earlier 'if they wish'? That could be very helpful; one of the issues identified in the responses was that most returns could not be started until July at the latest. There was a question raised at the Wyman symposium as to whether the PAYE end of year procedures were now appropriate to a largely online system.
However, it was also clear that Lord Carter was not actually convinced that the deadline could not be shortened, he simply accepted that it was going to overshadow the whole e-agenda if it was forced through. Joint work to get clients to submit their information earlier will be good for both HMRC and advisers, but it is to be hoped that we don't have to fight this battle all over again in five years time. Looking at the statement positively, though, the phrase 'if they wish' is very helpful, and represents - in our view - the way forwards.
posted by Mike at 10:34 am
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