HMRC is consulting on plans to introduce paperless Self Assessment (SA) tax returns which would see communications with taxpayers conducted electronically, in line with the department's digital strategy.
HMRC says that the 'vast majority' of its 10m SA customers choose to file online, with 7.65m SA tax returns made via the internet in 2011-12. However, the department says that only 25% of their interactions with HMRC are currently online.
Under the proposals set out in the document HMRC Digital Strategy - legislative changes to enable paperless Self Assessment, registered SA online customers will be able to opt to receive appropriate HMRC communications electronically rather than via traditional print and post channels.
Those who consent to the new service will be sent a message by HMRC informing them information has been delivered to their secure mailbox and is available to view via their online account. Customers will log in to read the delivered notice or reminder, and in most cases will be able to complete their transaction online.
HMRC says statutory notices and reminders made available to customers in this way will have the same legal validity as a paper statutory notice and reminder sent by letter and post, even if the customer does not take action to view the message online, a point which will be explained as part of the opt-in process.
HMRC says it will adopt a staged approach to implementation, covering statutory notices such as tax returns, enquiries, determinations and assessments, as well as penalties, reminders and other tax related communications, and is also looking at how social media accounts could potentially be used as part of the new electronic service.
David Gauke, exchequer secretary to the Treasury, said: 'HMRC's Digital Strategy will make processes like SA faster and simpler. It will deliver the tax system for the 21st century that taxpayers expect.'
Changes to existing tax law are needed to enable HMRC to offer an end-to-end online service. HMRC needs to amend the Income and Corporation Taxes (Electronic Communications) Regulations 2003 (S.I. 2003/282) to ensure it has the lawful authority to deliver the statutory notices and reminders electronically. Amendments will also be required in relation to obtaining the customer's consent for electronic delivery and the use of the SA Online service for this purpose. Subject to the necessary legislation being in place, HMRC intends to start trialling the new service early next tax year.
The consultation document sets out the details of the proposals and asks for comments on the draft legislation. The deadline for comments is 27 December 2013 and responses should be sent to [email protected]. More details are available HERE
