HMRC’s use of automated functions confirmed

The government will legislate in Finance Bill 2020 to put beyond doubt that the use of automated processes for functions such as issuing assessment and penalty notices have always been authorised under tax law announced Jesse Norman in a written statement to the House of Commons.

The financial secretary to the Treasury explained that the legislation would have retrospective effect because it was ‘necessary to close off the exchequer and operational risks presented by judicial challenges to HMRC’s ability to automate certain functions’. He added: ‘It will protect very substantial sums of tax and penalties already legitimately paid. It will preserve the status quo for taxpayers and HMRC merely confirming the validity of HMRC’s longstanding and widely accepted operational practice. Taking this action will help to guarantee the integrity of the tax base provide certainty to taxpayers and allow the government to continue to administer...