Amendments to tax returns
Executive summary
- AAT strongly supports the government in its willingness to "ensure that the process to amend a tax return is simple and transparent for taxpayers to use".
- AAT acknowledges that tax records will increasingly be held and submitted digitally and that HMRC’s digital agenda is an opportunity to modernise the process and create a better taxpayer experience. However, it should be noted that taxpayers (individuals and businesses) have had to absorb the administrative burden and much of the costs of HMRC’s digital agenda. For example, the cost to businesses of its Real Time Information (RTI); development of the PAYE system; the introduction of iXBRL and now the software and administrative costs for Making Tax Digital (MTD).
- This is an opportunity for HMRC to provide a quality single digital amendment process to taxpayers and agents. The process needs to confirm to taxpayers and agents that HMRC has taken the correct remedial action and removed the need for follow-up calls to HMRC Helplines, except where "reasonable care" has not been exercised.
- The AAT Amendments to Tax Returns Survey 2019 demonstrated that more than two thirds of AAT members (67.5%) were, to varying degrees, in favour of a single digital amendment process. Less than a third (32.5%) had an unfavourable view.
Related consultation responses
Spring Budget 2024 representation
This representation ahead of the March 2024 Spring Budget sets out AAT’s policy position on tax, professional standards, support for SMEs and late payments.
Progress with Making Tax Digital
We believe HMRC must stick to a timeframe for the roll-out, simplify as well as digitise complex processes, and build greater awareness among small businesses.
Making Tax Digital for Corporation Tax
We think practical benefits are likely, but while a reduction in errors is possible in the medium to long term, they may increase in the short term.
