Review of HMRC Online Services
A number of key steps for HMRC’s implementation of Lord Carter of Coles’ Review of HMRC Online Services are announced today in Budget 2007.
Legislative change in or alongside Finance Bill 2007
You can find details of primary legislation affecting
- Income Tax Self Assessment filing dates (from April 2008)
- The period of time that HMRC have to enquire into ITSA and most Company Tax returns; and
- HMRC’s powers to make regulations in relation to online filing and electronic payment
Please see Budget Notes
- BN80 - Changes to the income tax and corporation tax enquiry windows, the existing powers to require online filing and electronic payment, and the effective date of payment by cheque (PDF 50K)
- BN81 - Changes to Self Assessment Tax Return filing dates (PDF 39K)
We have published draft secondary legislation on PAYE measures (PDF 79K)
A full Regulatory Impact Assessment has been published (PDF 170K)
Changes to the Carter timetable
Following successful completion of the initial phase of work, we have had an opportunity to take stock – and in particular look closely at the concerns which have been raised by stakeholders and customers.
As a result, we have proposed an extended timetable for implementation of Lord Carter’s recommendations which has been agreed by Ministers and is summarised below. HMRC still aims for universal electronic delivery of tax returns from businesses and IT literate individuals as Lord Carter recommended. Next year we will be focussing our investment on SA, the online service which is most mature has the greatest customer use, and which offers the greatest benefit to customers. We will also, in line with Lord Carter’s recommendation, be investing in ensuring that our online services are robust, reliable and thoroughly tested.
One of the biggest issues raised by stakeholders during recent engagement has been whether HMRC’s IT systems will be ready in time to support those services which are being mandated. We are confident that they will be, but the extended timetable will serve to further de-risk implementation, ensure that the relevant systems are robust and that customers have confidence in them before further parts of online filing services are mandated. Additionally the extended timetable will give large firms more time to prepare for in-year PAYE (where their processes are often decentralised) and more time for XBRL (a financial accounting language which companies will be required to use for their accounts) to mature; two concerns which have been raised with us.
Service |
Revised date |
Original recommendations |
|---|---|---|
SA |
Delivery in April 2008 (Unchanged) The SA enquiry window will still change and apply for 2007/08 Returns and subsequent years |
Delivery in April 2008 |
PAYE |
Large and medium sized employers (those with 50 or more employees) required to file in-year forms online from April 2009 Small employers (with fewer than 50 employees) required to file in-year forms online from April 2011 |
Large & medium sized employers required to file in-year forms online from April 2008 Small employers required to file in-year forms online from April
2010 |
VAT |
Large, medium sized and most small traders (those with turnover > £100K) and all newly registered VAT traders required to file online and pay electronically from April 2010 at the earliest. |
Traders with turnover > £5.6m and all newly registered VAT traders required to file online and pay electronically from April 2008 Traders with turnover > £100k required to file online and
pay electronically from April 2010. |
CT |
Online filing and electronic payment for all CT returns using XBRL standard mandated from April 2011 Joint filing facility with Companies House by 2011 The CT enquiry window will still change in 2008 for most companies
for accounting periods after 31/3/2008. |
Online filing and electronic payment for all CT returns using XBRL standard mandated from April 2010 Joint filing facility with Companies House by 2010 |
Lord Carter’s review (PDF 521K) was published on 22 March 2006. He concluded that well-designed online services can bring benefits to taxpayers and the Government. The Government welcomed his report, which was based on wide-ranging consultation with stakeholders, and accepted the recommendations.
Please note as part of HMRC’s consultation exercise Lord Carter agreed to review the evidence for his recommendation on SA filing dates. Having reviewed the responses received he revised this recommendation. A Ministerial statement was issued on 18 July confirming the Government’s acceptance of the revised recommendation that for 2007-08 and subsequent returns, the deadline for filing paper SA returns should be 31 October and the deadline for filing SA returns online should remain at 31 January.
Paper substitute returns
The Government accepted Lord Carter of Coles’ recommendation that, to encourage online filing, computer generated substitute versions of the SA Return should no longer be approved or accepted.
This will apply from April 2008 (2007/08 onwards) for
- SA Individual Returns – (SA100 series)
- SA Partnership Returns – (SA800 series)
- SA Trust Returns – (SA900 series)
For the time being, HMRC will continue to accept approved substitutes for the remaining types of SA Return. (Trustees of Registered Pension Schemes - SA 970, and Non-resident companies liable to Income Tax - SA 700).
You’ll find further information in the attached document (PDF 53K). (Please note this replaces the earlier document issued in March 2007 after the budget).
Further information for software developers is in the attached document (PDF 27K)
