Self-assessment tax amnesty undermines statutory regime

Self-assessment tax amnesty undermines statutory regime

HMRC's latest tax compliance scheme could reflect badly on it, says Baker Tilly's senior tax partner, George Bull

WE WELCOME any activity which ensures that the fair and proper amounts of tax are paid. However, is HM Revenue & Customs doing the right thing by offering another amnesty to reach this goal?

It seems that HMRC is trying to secure the completion of tax returns which should have been filed 18 months ago, in January 2011 or even earlier. This belated attempt certainly begs the question as to why HMRC hasn’t already pursued the recalcitrants. It is not as if HMRC doesn’t know who they are.

We also have doubts as to whether this amnesty is actually fair. The page on the HMRC website detailing the amnesty suggests that people who sign up for the 2009/10 (and earlier) amnesty may be treated more leniently than those who have already filed late for any of those years and were charged interest and penalties. That’s a bit like retailers offering better terms to new customers than long-standing, loyal customers.

Furthermore, this endless string of amnesties is beginning to reflect badly on the taxman. Why doesn’t HMRC offer a blanket amnesty, giving anybody whose tax affairs are not in good order a once-and-for-all chance to make honest women and men of themselves, before returning to the normal, statutory regime for tax compliance?

George Bull is senior tax partner at Baker Tilly

Image credit: Shutterstock

Share

Subscribe to get your daily business insights

Resources & Whitepapers

Why Professional Services Firms Should Ditch Folders and Embrace Metadata

Professional Services Why Professional Services Firms Should Ditch Folders and Embrace Metadata

3y

Why Professional Services Firms Should Ditch Folde...

In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...

View resource
2 Vital keys to Remaining Competitive for Professional Services Firms

2 Vital keys to Remaining Competitive for Professional Services Firms

3y

2 Vital keys to Remaining Competitive for Professi...

In recent months, professional services firms are facing more pressure than ever to deliver value to clients. Often, clients look at the firms own inf...

View resource
Turn Accounts Payable into a value-engine

Accounting Firms Turn Accounts Payable into a value-engine

3y

Turn Accounts Payable into a value-engine

In a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...

View resource
Digital Links: A guide to MTD in 2021

Making Tax Digital Digital Links: A guide to MTD in 2021

3y

Digital Links: A guide to MTD in 2021

The first phase of Making Tax Digital (MTD) saw the requirement for the digital submission of the VAT Return using compliant software. That’s now behi...

View resource