ACCA is urging the UK’s tax authority to take full advantage of digital technology to minimise companies’ tax filing burden. The global leading accountancy body is supporting HMRC’s plans to modernise and standardise company tax returns. 

In a response to HMRC’s consultation ACCA says that a standardised, full tagged format for Corporation Tax computations could promote efficiency by triggering fewer enquiries from the tax authorities and reducing repeated taxpayer input. 

However, Glenn Collins, Head of Technical and Strategic Engagement, ACCA, said: ‘Against a challenging economic backdrop for UK businesses, it is important that new compliance obligations remain proportionate. Cumulative burden of regulation has the biggest impact on business. Parallel processes, overlapping obligations, and duplicate requirements make compliance much more time intensive.’

HMRC is also urged by ACCA to maintain flexibility in any new system. Christian Novak, Policy manager, EEMA- UK, said: ‘ACCA views lock tags in software products as helping promote both consistency and standardisation. However, we would like to see more examples of how such requirements operate in real-world contexts. This includes the process that underpins alterations and the blocking of submissions.’

ACCA warns that the Inclusion of the term ‘approved’ poses some risk. Collins said: ‘The proposals would see HMRC assume an expanded set of technical and operational responsibilities. While positive for transparency, such a list must carry the same meaning for HMRC, taxpayers, and agents.’

Any effective tax system has simplicity, certainty and stability as its cornerstones. When introducing new reporting requirements, HMRC should be mindful of these three principles and the repercussions on business.

Read the ACCA response here.

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About ACCA

We are ACCA (the Association of Chartered Certified Accountants), the only truly global professional accountancy body. Since we were founded in 1904, we’ve been breaking down barriers to the accountancy profession. Today we proudly support a diverse community of over 257,900 members and 530,100 future members in 180 countries.
We’re redefining accountancy. Our cutting-edge qualifications, continuous learning and insights are respected and valued by employers in every sector. They equip individuals with the business and finance expertise and ethical judgment to lead and drive sustainable value in organisations and economies worldwide.
Guided by our purpose and values, we’re leading the accountancy profession for a changed world. Partnering with policymakers, standard setters, the donor community, educators and other accountancy bodies, we’re strengthening and building a profession that focuses on people, planet and prosperity to create value for all. 

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