Friday 12 May 2023

ICAEW Asks HMRC To Drop Quarterly Reporting


In a letter addressed to HMRC’s Joanna Rowland and Jonathan Athow, ICAEW’s Frank Haskew said:

"In particular, we consider that the administrative burden associated with quarterly updates is disproportionate and needs a rethink. Even when a taxpayer is maintaining digital records on a regular basis, having to ensure that these records are complete and checked by specific quarterly deadlines adds extra compliance burdens, especially where a bookkeeper or agent is involved as we expect in the majority of cases. Quarterly updates provide HMRC with little or no assurance about the quality of the underlying digital records. One of the reasons why quarterly reports are getting all the attention is because they can lead to late submission penalties. 

Record keeping penalties are not being reformed despite that being the primary behaviour that needs to change. We suggest that HMRC starts by introducing the requirements to maintain digital records and to submit details of income from self-employment and property directly from software but that the current annual reporting cycle is maintained. Quarterly reporting could be considered in the future, once an annual system is established, if that does not lead a sufficient improvement in record keeping. We anticipate, however, that given the increased impetus towards digitalisation, that requiring the use of software and digital records should provide most of the benefits sought. More frequent MTD ITSA reporting could be considered for those VAT registered businesses that already report on a quarterly cycle. Quarterly updates could be optional."

Pound to a penny HMRC does not drop the requirement!

Tax does have to be taxing.

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  1. HMRC struggles with Annual Reporting. I've nothing but confidence in their ability to cope with Quarterly Reporting.

    More changes, more enquiries from the public, more confusion, more 'everything in the garden is rosy' statements like Phil and Holly on the Sofa...


    HMRC has all of this information, just no staff to act on it properly. Artificial Intelligence won't deal with enquiry arrears or answer the phone without replying with chatbot gibberish. Who knows, shove a Duracell somewhere maybe it'll help.