The Courier & Advertiser (Perth and Perthshire Edition)
Concern over new quarterly tax filing regime
A Fife tax specialist has said HMRC plans to bring forward quarterly tax returns are a recipe for disaster.
Stewart McKinnon, director of Dunfermline-based M&S Accountancy and Taxation, said HMRC were using stealth tactics to push through their Making Tax Digital agenda by 2020.
“Worryingly, while HMRC claim this is not a done deal, the self-employed and smaller limited companies are definitely going to be subjected to a quarterly filing regime for their business income and expenses,” Mr McKinnon said.
“Alarmingly for smaller businesses, penalties are likely to be imposed if this is not done by the deadline. These could well increase for repeat offences.
“HMRC have been at pains to stress this is not four tax returns per annum but simply four submissions. Who is kidding who here?
“Many of our clients will, by law, have to provide HMRC with details on a quarterly basis of their business income and expenses in a format that provides an ongoing tax calculation.
“HMRC may not think so but that seems awfully like a tax return to me.
“What’s more, taxpayers will also be required to submit an annual reconciliation over and above the four returns, which makes a nonsense of last year’s Budget headline announcing the abolition of the annual tax return.”
Mr McKinnon fears the low turn-out at recent HMRC consultation events suggest many tax advisers have still to grasp the implications of the planned shake-up.
“We are not opposed to the digital age applying to the tax system and we can see the benefits for many taxpayers who are in employment and with relatively simple tax affairs,” he said.
“But while changes would most likely mean extra work for us, we are totally opposed to them and believe for the selfemployed and business owners they are a recipe for disaster.”