Success Story?

How many tax practitioners – and their clients – would say that self assessment has improved the administration of income and capital gains tax? No doubt some aspects are an improvement but the jury is still out as regards the full system from the viewpoint of all involved. However the National Audit Office's report Inland Revenue: Income Tax Self Assessment has concluded that there has indeed been an improvement. Furthermore the report also concludes that self assessment has made 'assessments more straightforward and allowed a more focused approach to compliance work'. Perhaps the latter conclusion is true but the notion of assessments being more straightforward requires some stretching of the imagination.

The National Audit Office report looked at three areas: the identification of taxpayers return management and the conduct of enquiries.

Identifying taxpayers

The report notes that 'all taxpayers have a legal duty to notify...