Lord Carter expects BACS tax filing

Lord Carter, author of the controversial review of HMRC's online services, has revealed to Accountancy Age that a successful trial of using BACS to file tax returns would probably see the system run in tandem with other filing channels, such as via the internet.

'We are looking at how we can use BACS; it's still early, but if successful would have to be seen as an extra service,' said Lord Carter.

An executive committee led by HMRC head Sir David Varney has agreed to use BACS to file tax returns – an idea first suggested by a report produced for the prime minister.

The Carter Review, fully accepted by HMRC, was revealed yesterday to great consternation by the accounting profession. His recommendation to move SA filing dates to 30 September for paper returns and 30 November forward from 31 January has been viewed as 'spoiling' many of the sensible points he made in his review.

He also recommended linking the period HMRC has to query a tax return from the date it is filed, and making HMRC internet service have more filing capacity to enable accountants working on behalf of clients to file extra attachments with returns. Both moves have been warmly welcomed by the profession.

'We spoke to lots of stakeholders, and had tremendous input,' said Lord Carter.
'They don't want anything fancy, but something reliable that will do the job.'