Clause 23
Finance (No. 2) Bill
10:30 am
Mark Hoban (Shadow Minister, Treasury; Fareham, Conservative)
I, too, welcome you to the Chair, Mr. Benton. The stand part debate presents an opportunity to mention the issue of the proposed shortening of filing deadlines for income tax self-assessment returns, as outlined in the Carter review that was published at the time of the Budget. The review’s recommendations were accepted by the Government. For those submitting their tax returns for the 2007-08 tax year online, the filing date will be 30 November 2008, whereas for those submitting their income tax returns on paper, as all Members of the House currently have to do, the deadline will be 30 September 2008, instead of the existing filing date of 31 January in the year following the end of the tax year.
The consternation that the proposal has caused among tax advisers can be imagined—they are concerned about the impact that it will have on them and on their clients. The news section of TaxationWeb has an item that says:
“FILING DATE PROPOSAL HAS TAX ADVISERS ‘UP IN ARMS—A campaign against a proposed 30 November deadline...has signed up 2,500 supporters in less than four weeks.
The specialist magazine Taxation launched its ‘No to November’ campaign on 13 April. Editor Mike Truman told TaxationWeb that completed forms were still arriving at the rate of about 100 a day. Only one correspondent so far has said he agrees with the proposal.
Frank Askew, of the ICAEW”—
I should declare that I am a non-practising member of the Institute of Chartered Accountants in England and Wales—
“said ‘It is very disappointing that this recommendation has been accepted by the Government with no debate and consultation.’
Ann Redston”—
the chair of personal taxes at the Chartered Institute of Taxation—
says ‘There has been no consultation with taxpayers or agents on this measure. HMRC should first find out if this idea is practicable before they announce such a radical change. Consultation should precede decisions, not follow them.’
She continued:
“This is putting the ‘Carter’ before the horse.”