Tuesday 28 July 2009

Absurd

What The Fark!
The Institute of Chartered Accountants of Scotland (ICAS) have issued a press release stating that it is absurd that HMRC impose compulsory online filing during a recession.

It notes that HMRC plans to adopt Inline XBRL (or iXBRL) would be the first large-scale iXBRL implementation worldwide. Given HMRC's rather rickety IT systems, how wise is this without thorough embedding and testing?

Governments and their departments/organs of state don't "do IT"...PERIOD!

News Release – ICAS: Imposing compulsory online tax filing during a recession is absurd

It is absurd to require businesses struggling during a recession to introduce a mandatory online tax filing system. That's the view of The Institute of Chartered Accountants of Scotland (ICAS) in response to an HMRC consultation on draft laws requiring all companies to submit statutory accounts and tax computations in a revolutionary new data format (XBRL) by April 2011.

HMRC urged to reconsider its plans

ICAS objects to the additional burdens, costs and risks of this during the current recession – when many businesses are struggling to survive and should be concentrating their management expertise on the much more pressing and important task of maintaining productivity and employment.

Donald Drysdale, Assistant Director at ICAS and a Chartered IT Professional, said:

"In his Review of HMRC Online Services, Lord Carter of Coles recommended the use of XBRL, but emphasised that the new standard should not be imposed until it had been implemented and had bedded down. He also noted that other improvements would be needed before the service would meet the needs of tax agents.

Many companies won't be ready for this. It is absurd to require businesses struggling during a recession to introduce this.

XBRL has been used relatively sparingly to date, and HMRC plans to adopt Inline XBRL (or iXBRL) would be the first large-scale iXBRL implementation worldwide, so the technology certainly hasn't been adequately tried, tested and proven to be reliable.
It falls far short of Lord Carter's criteria."

ICAS has been exploring this topic with HMRC for more than two years. The Institute was instrumental in establishing tripartite discussions among Government, the tax profession and software vendors, but now reports widespread concerns that software solutions for preparing iXBRL-based statutory accounts will not be available in time.

Drysdale added:

"It's misguided and disproportionate to mandate iXBRL-based online filing by all companies as early as April 2011.

We've urged HMRC to reconsider its plans in the light of the relatively immature market position of XBRL, and we've asked that Ministers shift to a gradual voluntary adoption of iXBRL filing until the new software for tax and accounts preparation
has been properly tried and tested
."

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

What is TAXWISE?

TAXWISE is a tax-fee protection service that will pay up to £75,000 towards your accountant's fees in the event of an HM Revenue & Customs full enquiry or dispute.

To find out more, please use this link Taxwise

Tax Investigation for Dummies, by Nick Morgan, provides a good and easy to read guide for anyone caught up in an HMRC tax investigation. A must read for any Self Assessment taxpayer.

Click the link to read about: Tax Investigation for Dummies

HMRC Is Shite (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"

5 comments:

  1. They dont have the money to spend on it as people such as Steve Lamey (Member of the Board) picked up a bonus between £30,000 and £35,000 last year - he trousers a whole load more than me and I ACTUALLY collect the money !

    ReplyDelete
  2. Well with the mantra of cuts, cuts, cuts the powers that be want to get rid of staff so who's going to do the work...yes you've got it employers agents and the General Public that's who.
    The great unwashed still don't realise if you've got public services they have to be paid for,so the next time you let out a cheer when there's a new raft of Public Sector job losses just remember if we're not here to process the work some one has to and that's you Suckers over the internet,

    ReplyDelete
  3. Or we could just have a simpler tax system?

    ReplyDelete
  4. Xoggoyh you plum, you would still have to process claims no matter how simple the tax system was..
    Do you think the fairys and goblins work them at night?
    No it's Bods like me trying to do a decent job and getting it tight from clueless management and even more clueless general public who believing the Daily Mail stories think that all we do all day is drink tea and look forward to our "Gold Plated"pensions.

    ReplyDelete
  5. "Governments and their departments/organs of state don't "do IT"...PERIOD!"

    Another characteristically constructive bit of commentary there, Ken. Are you suggesting that they shouldn't even try?

    ReplyDelete