HMRC tax paperwork plans are 'short-sighted'

Date: 8th September 2010

Recently-announced plans from HM Revenue & Customs (HMRC) regarding copying tax agents in on client correspondence have been slammed by one industry body.

HMRC is to save costs by not issuing copies of some client mail to tax agents.

However, the move has been blasted by the Chartered Institute of Taxation (CIoT), which described the move as "short-sighted".

Anthony Thomas, CIoT deputy president, said: "Everybody recognises that there is pressure on all government departments to find savings wherever they can.

"But by keeping tax agents less well-informed about their clients' tax obligations HMRC are likely to find they lose more money than they save."

The expert said the move is likely to lead to an increased number of enquires, which could negate the projected £1.25 million worth of savings the move will bring.

As such, the CIoT has now called on HMRC to reverse the decision or at least postpone it until a proper consultation has been carried out.

Posted by Jacob Williams