HMRC will launch its own online Corporate Tax filing system in the autumn for use by smaller, unrepresented companies across the UK. At the same time, HMRC will provide a new validation service, enabling accounts to be filed using Inline XBRL. Jon Wilcox reports.
HM Revenue & Customs officials confirmed the department's online plans at the Digita annual conference last week, where they faced several calls from delegates for improved communication with agents.
Digita business development manager Nigel Powell explained that the new HMRC mechanism will let individuals and companies file electronic accounts statements using the extensible business reporting language XBRL to support their CT tax returns.
"There would appear to be a fairly large rump of companies who prefer to do their own accounts rather than use agents and it is well known that HMRC has sought free at the point of use for that particular group," Powell said.
The tax software industry will be watching closely, he added, to see how sophisticated the free application will be.
In the meantime, the department is moving inexorably on towards the (amended) milestones set out by Lord Carter's review of HMRC online services. Having exceeded expectations for the volume of Self-Assessment tax returns filed electronically this January - nearly 5.76m - mandatory online filing of in-year PAYE forms (P45s, P46 etc) will begin this month for companies with more than 50 employees.
Two in particular, the implementation of dual data centres to provide service continuity, and extensive testing periods, were cited as key measures. Reinforcing its online presence in light of Lord Carter’s report,
From the beginning of April 2010, HMRC will phase out paper VAT returns for new companies and all VAT-registered businesses with a turnover in excess of £100,000.
During their 60 minute update on electronic services, HMRC's representatives fielded several comments from attendees about the need for better communication with tax agents. Responding to complaints about the agent help line, the officials apologised but pointed out that the problems encountered had only been "sporadic".
Work continues on a revamped HMRC web portal, which should improve the flow of information both ways when it is introduced in the autumn, they added.