HMRC 'needs to take IT problems into account'

News Article - 02 January 2008
Category: Technology

HM Revenue & Customs (HMRC) needs to be more "pragmatic" when it comes to online tax returns, according to the Association of Chartered Certified Accountants (ACCA).

Chas Roy-Chowdhury, head of taxation at ACCA, told BBC Radio 4's You and Yours programme that HMRC should cancel the penalties given to people whose tax forms were not processed in time due to IT problems within the organisation.

"In this particular case the taxpayer actually did their best to comply and confirm with the system and comply with the deadlines and there is just a problem with the actual IT systems themselves," he said.

His comments follow an announcement by Edward Leigh, chairman of the Commons Public Accounts Committee, which estimated that £1.5 billion in tax revenue has been put into doubt by people returning their forms after the deadline.

Mr Chowdhury explained that under the paper-based system, HMRC were aware of all late tax returns.

However, with online returns, the organisation seems to be unaware of many cases and therefore cannot contact the individuals to let them know. In some cases, people have received a £900 penalty as late as nine months after the deadline, he added.

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