.png)
.png)
The current economic climate is not the right one in which to make online filing of National Insurance, PAYE and VAT returns mandatory for all businesses, according to the Chartered Institute of Taxation.
In its response to HMRC’s draft regulations on the subject, the body makes clear its objections, but agrees in principle with the idea of gradually moving towards mandatory electronic filing for most firms.
The CIOT proposes that compulsion is delayed for VAT filing purposes, to allow adequate time for accounting systems to be implemented, agents to be authorised and the continued rollout of reliable broadband.
Overall, the institute feels that a staged approach to mandatory online filing for VAT would be preferable, along the lines of the approach adopted for PAYE.
If compulsory online filing is not deferred, the CIOT suggests that businesses that have been unable to obtain proper broadband access should be exempt.
Welcoming the proposed exemption from mandation for ‘care and support employers’, the institute urges HMRC to address the concerns raised by the Low Incomes Tax Reform Group regarding the scope of the exemption from the PAYE regulations for ‘accidental employers’.
It also suggests that the Working Together reasonable excuse claim form should be made widely available for all taxes.
