Business News
Electronic is the way forward for compliance
HMRC has long been known to take what can seem like an inordinate amount of time to confirm receipts of documents and action post received, a long standing gripe of tax advisors, you and I alike! Off the back of this, the HMRC has now begun to introduce electronic scanning of its post. Completing their first phase of bringing the scanning technology in, HMRC has said that new tools will help staff to deal with tax and compliance enquiries more quickly and efficiently, with plans to scan a large majority of its post for compliance checks over 2011/12.
The post will be referenced by a single PO Box address and a case reference, and HMRC last week said that “scanning the incoming mail will mean that the documents and letters received will be linked to the customer case record and available to caseworkers within 36 hours, it will also help to reduce the risk of post going astray,”
The initiative comes after sustained complaints and negativity surrounding the current, soon to be old process, with job cuts at HMRC hindering the speed of action further as highlighted in the Working Together Initiative.
In addition, a recent case at tribunal, Heronslea v HMRC, was upheld in favour of Heronslea’s appeal against HMRC due to a late tax return penalty issued by post. The CIS tax return was due on the 19th of June and finally received on the 22nd June, for which HMRC issued a late penalty. Director Michael Clifton of Heronslea appealed, claiming the tax return had been returned in good time due to a pending holiday and tribunal judge Anne Redston found that HMRC failed in getting forms to his correct address and to the failed logging of post and lack of communication on their part. The appeal case was won and the £100 penalty withdrawn.
