HMRC plans to publish on 21 October four additional toolkits for agents. The new toolkits will deal with losses, the distinction between capital and revenue, directors' loan accounts and property rents.
The toolkits set out ‘areas of error’ that HMRC frequently sees in tax returns and steps that agents can take to reduce those errors.
Although HMRC says use of the toolkits is ‘entirely voluntary’, there has been some concern among tax advisers that they might be regarded as a benchmark indicator of ‘reasonable care’ in assessing penalties for incorrect returns.
When the toolkits were launched in May, the ICAEW Tax Faculty said it was important to note that the toolkits are HMRC publications (albeit developed in cooperation with the professional bodies) and give HMRC’s view of the law.
‘The Tax Faculty’s view is that toolkits are an additional tool which some agents may find very useful, others not. We welcome the fact that they can be used in different ways to suit the agent, and we would not want to see them become mandatory,’ it added.
HMRC plans to publish on 21 October four additional toolkits for agents. The new toolkits will deal with losses, the distinction between capital and revenue, directors' loan accounts and property rents.
The toolkits set out ‘areas of error’ that HMRC frequently sees in tax returns and steps that agents can take to reduce those errors.
Although HMRC says use of the toolkits is ‘entirely voluntary’, there has been some concern among tax advisers that they might be regarded as a benchmark indicator of ‘reasonable care’ in assessing penalties for incorrect returns.
When the toolkits were launched in May, the ICAEW Tax Faculty said it was important to note that the toolkits are HMRC publications (albeit developed in cooperation with the professional bodies) and give HMRC’s view of the law.
‘The Tax Faculty’s view is that toolkits are an additional tool which some agents may find very useful, others not. We welcome the fact that they can be used in different ways to suit the agent, and we would not want to see them become mandatory,’ it added.
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