Clause 92

Part of Finance Bill – in a Public Bill Committee at 6:30 pm on 5 June 2007.

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Photo of John Healey John Healey The Financial Secretary to the Treasury 6:30, 5 June 2007

The previous five clauses all dealt with Lord Carter’s recommendations on self-assessment tax returns. The next clauses complete the package of legislative changes needed to implement his other recommendations. Together, they will mean that both business and HMRC will achieve the benefits that he envisaged.

Clause 92 extends HMRC’s powers to require the use of electronic communications for the delivery of information to all taxes and duties for which it is responsible. In line with Lord Carter’s recommendations, the revised power will enable HMRC to make recommendations to require companies to file their company tax returns online, to require employers to file their in-year forms online and to require VAT traders to file their VAT returns online. Those requirements will be phased in from April 2009, in line with the revised timetable that we announced in the Budget. That timetable will give businesses the time that they need to prepare for the changes.

I am happy to put it on the record again that none of those requirements will be introduced until the services have been thoroughly tested and proven to operate effectively. That is in line with the principles set out by Carter. Both the Treasury and HMRC take that point very seriously. That is one reason why HMRC is investing £170 million in its online services over the coming years——to ensure that it will be able to perform to the level and capacity that we require. I commend the clause to the Committee.