OTHER MATTERS
Online filing
Lord Carter’s review of HMRC online filing
services was published earlier in 2006. Legislation will be brought
forward during 2007 to implement the changes which will start in 2008.
The key proposals are to:
- require businesses to file their VAT returns,
company tax returns and PAYE in-year forms online in phases from April 2008
- introduce new filing deadlines for income tax self
assessment returns of 31 October for paper forms from 2008 but retain 31
January for online returns
- promote online filing by tax agents and better
quality data by withdrawing computer generated paper ‘substitute’
self assessment returns from 2007/08.
Company filing dates
Following Lord Carter’s recommendations and
consultation by HMRC and Companies House, the government will work to provide a
single online filing facility by 2010. To encourage earlier filing and give
businesses certainty sooner, from 2008 the period during which an enquiry can
be opened into a corporation tax return will be tied, for most companies, to
the actual date HMRC receives the return rather than a fixed filing date.
Review of HMRC powers, deterrents and safeguards
The government launched a review of HMRC powers and
taxpayer safeguards in March 2005 to provide tools for the newly integrated
HMRC. In March 2006 HMRC launched its second consultation on the general
principles of reform and in August more detailed consultation on modernising
criminal investigation powers.
A summary of the responses to the March
consultation has now been published. The comments are generally supportive of
the broad approach proposed. A detailed consultation on penalties for incorrect
returns and a further consultation on criminal powers will be published in the
near future.
Varney Review - review of links with large
businesses
The findings of the review carried out by Sir David
Varney were published in November 2006 and the government has confirmed that it
has accepted all its findings.
The review’s proposals will
provide:
- business with greater certainty about the tax
treatment of transactions by providing a system of advance rulings for
significant transactions
- more efficient resolution of tax issues
- a more cost effective approach to administering tax
affairs based on an efficient risk-based audit approach.
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