Accounting bodies reject filing proposals
Accounting bodies say proposals by HMRC to align the filing dates for companies will not save money and will increase red tape
The proposals aim to
- Reduce the burden on companies of supplying over-lapping information to HM Revenue & Customs (HMRC) and to Companies House.
- Reduce the period of uncertainty during which a company tax return may be selected for enquiry by HMRC.
- Improve the compliance assurance process, allowing enquiries to be dealt with while events are fresher in people’s minds and records are more readily to hand encourage the take-up of internet services.
The overall aim is to build a single online service covering companies’ obligations under both the Companies Act and the Taxes Acts - leading to estimated savings of £100 million per annum.
The Institute of Chartered Accountants for England and Wales says that simultaneous filing will not necessarily save time or costs. It points out that some adjustments simply cannot be made within the proposed new time frame, for instance where there are tax rules which require certain expenditure to have been paid within specified time limits following the end of the year in order to qualify for a tax deduction in the return.