Thursday, 10 February 2011

MP raises online filing concerns

South Northamptonshire MP Andrea Leadsom has raised concerns about Government plans to introduce online filing for corporation tax.
Speaking in the House of Commons on Tuesday (February 8) the Conservative politician questioned exchequer secretary to the Treasury David Gauke on the issue.
Mrs Leadsom's question followed the failiure of HM Revenue and Customs (HMRC) to correctly tax people using the PAYE system. A new PAYE computer system was recently described as 'flawed' by Parliament's Public Accounts Committee, which said up to 22 million people had not been taxed accurately since 2004-05 causing 'unacceptable uncertainty and inconvenience'.
The problems were first highlighted last September when HMRC told taxpayers a new computer system for managing the PAYE system had revealed 6.6 million people who had overpaid or underpaid tax in the two years 2008-10.
And the new online filing system has also come under fire ahead of its planned introduction on April 1.
Last week HMRC said it would continue to push forward with its plans for corporation tax returns to be filed online despite calls for a delay prompted by concerns the new technology needed for the system may not be ready.
From April all corporation tax must be filed to the taxman using data-tagging technology known as iXBRL.
But at least one provider has admitted it will not have this software ready in time.
Six accountancy institutes wrote to Mr Gauke requesting the deadline be pushed back.
But the HMRC said there are more than 30 IT providers who have already delivered the necessary technology.
Mrs Leadsom said the recent problems had raised concerns in her mind, asking Mr Gauke: "Is the Minister as concerned as I am about the imminent introduction of online filing for companies, many of which have said that they simply lack the preparedness to deal with it?"
But although South West Hertfordshire MP Mr Gauke admitted one of the providers had been unable to meet the timetable set out by HMRC, he said the original deadline would still apply.
"Those businesses that have delivered should not be punished because of the failures of another," he added.
The full exchange can be seen on Hansard.

> In her weekly round-up on events in Parliament, published on her website on Monday (February 7), Mrs Leadsom talks about issues raised over the NHS and Britain's forests. See the full post here.

No comments:

Post a Comment