AAT members call for single digital amendment process for tax returns

Two thirds of AAT’s members have recommended that there should be a single digital amendment process for tax returns, to help ensure simplicity for taxpayers and agents.

To inform its response to HMRC’s recent "Amendments to tax returns" call for evidence, AAT surveyed its licensed accountant members and found that more than two thirds (67.5%) are, to varying degrees, in favour of a single digital amendment process. Less than a third (32.5%) have an unfavourable view of the idea.

Phil Hall, AAT Head of Public Affairs and Public Policy, said: "AAT members views on this issue are quite clearly in favour of a single amendment process and whilst AAT recognises there will be significant challenges to achieving this - given that tax returns for payroll, VAT, individuals and businesses are very different - the savings that are likely to be realised, not least due to a knock-on reduction in HMRC resources, suggest that this is an ambition worth pursuing."

The survey also showed that after receiving an online confirmation AAT members are waiting on average 23 days to obtain a response from HMRC. AAT argues in its submission to HMRC, that whilst a response time of 23 days "may appear to be reasonable ... in some circumstances, such as payroll, such a delay could cause considerable inconvenience”.

More than one in five (21%) of survey respondents said that they had to wait 30 days or more to get a response from HMRC and of those respondents, 2% said they had waited up to a year.

AAT also took the opportunity to highlight a degree of inequity in the way that HMRC can pursue taxpayers long after the time periods that taxpayers could reasonably make a claim against HMRC. The submission states: "Amendments can be a two-way process, are sometimes in the taxpayer’s favour and sometimes in HMRC’s favour. A consistent, equitable regime which treats both parties the same therefore seems to be the very least that should be expected, not least to comply with the HMRC Charter."

Phil Hall added: "AAT is pleased that HMRC is consulting on these important issues, and welcomed the opportunity to survey our members and to discuss the issue with our Tax Panel to ensure we accurately reflected our members' views when submitting our response. We now await the outcome of this call for evidence with interest."

The AAT response is available to read in PDF.