HMRC proposals to introduce Paperless Self-Assessment (PSA) are flawed because they assume that all electronic communications with taxpayers are automatically received and allow no room for error, according to the Association of Taxation Technicians (ATT).
In its response to HMRC's consultation on the legislative changes needed to introduce PSA, the ATT highlights concerns about the 'presumption of effective delivery' and says HMRC should adopt a more positive approach to make sure any online communication has been viewed.
Under the proposals, which form part of HMRC's digital strategy, taxpayers who opt in to PSA will be sent an email or text message every time new 'paperless correspondence' from HMRC is sent to their secure HMRC mailbox. They are then presumed to have received that item and no further check is made to see if they have acknowledged delivery.
Yvette Nunn, ATT president, said: 'In the first instance, technological error could result in an email or text not having been received. Furthermore, the recipient could accidentally delete the email or text, mistake it for junk mail or part of the growing traffic of scam communications pretending to be from HMRC, or lose their mobile phone or have their email account hacked. They are nevertheless deemed to know that HMRC has sent something to their mailbox.'
Subject to the necessary legislative changes, HMRC says it intends to start trialling PSA early in the new tax year. Customers who choose this option will be sent a message notifying them specific Self Assessment items, for example, statutory notices, reminders and statements are available to view in their online HMRC account.
The consultation makes clear that 'the statutory notice or reminder will be legally valid even if the customer does not take action to view the message online' and says that this will be explained as part of the opt-in process. In the briefing, HMRC states: 'As is the case for paper-based delivery, a notice made available to a customer does not have to be read for delivery to be effective'.
Nunn says ATT wants more to be done to ensure that taxpayers using online mailboxes do not miss a significant communication, such as a penalty or an enquiry into their tax affairs, and so fail to take the necessary action.
'I am very concerned that the "presumption of effective delivery" will work to the disadvantage of taxpayers. Indeed, a number of our members have already indicated that it means that they will not recommend their clients to opt to receive paperless correspondence. That will be a lost opportunity for HMRC,' Nunn said.
HMRC's consultation closed at the end of last year, and a summary of responses is due to be published early in 2014.
