Life is tough on the front line of accountancy. For more than five years, our intrepid correspondent has been bringing us news and views from a typical West Country practice.
Tax return lite, or the complete works?
I suppose it's a bit late in the day to be questioning how we submit Tax Returns, but one of our new tax team members has mentioned that in his previous practice (a large firm) they always filed full tax computations with their Returns. Since self assessment started I have always adopted the practice of filing no more than HMRC ask for - which is just the Return.
So are we out of sync with the rest of the profession, or have we got it right?
My understanding is that there is no point submitting anything with a Tax Return unless we specifically draw the Revenue's attention to it in the white space on the Return and explain exactly why we are giving them something in addition. Otherwise we still have no defence against 'discovery' by HMRC.
Our experience is that HMRC virtually never look at what we put on the white space anyway so I can't see any value in sending computations etc in with a Return. If we are going to send in supporting documents, we are going to have to put a whole lot more on the Returns to make it a worthwhile exercise. Personally I can't see the point.