In his review of HMRC online services, published in March, Lord Carter recommended that the filing dates for income tax self assessment returns should be changed from 31 January to 30 November for returns filed online and to 30 September for paper returns.
The result was a ‘No to November’ campaign and a good deal of negative reaction. After consultation, the proposals have been revised so that the deadlines from 2008 will be 31 October for paper returns and will remain at 31 January for returns filed online.
Currently online filing of payroll year end returns (P35 and P14s) is compulsory for employers with 50 or more employees and will be compulsory for all by 2010. In the meantime there are tax free, monetary incentives to persuade everyone to file online.
P45s and P46s must be filed online from April 2010 for all employers and from April 2008 for employers with 50 or more employees.
Although not yet compulsory, it is possible to file VAT returns online and all of the more common types of company forms required by Companies House, such as the annual return and changes in directors or registered office, may also be filed online.
In February this year, the Public Accounts Select Committee argued that electronic filing of self assessment returns, though growing, still remained low compared to other countries. They recommended that online filing should be made more user friendly and that it should be compulsory for professional tax agents.
The clear intention is to move steadily towards compulsory online filing of all kinds of returns. Broadband connections and up to date software and computer systems are essential to ensure that you are ready for these likely developments.
Please contact us if you would like to discuss this in more detail.