On 7 November 2018 the UK government issued a call for evidence on the amendment of tax returns. The closing date for receipt of comments is 6 February 2019.

An amendment is any change made by a taxpayer to a tax return that has already been submitted to HMRC. The administrative process for tax return amendments ensures that both HMRC and the taxpayers can exercise their right to correct, adjust or amend a filed tax return.

Currently the methods of making amendments to tax returns vary according to the type of tax, the value of the amendment, the accounting period and the turnover of the taxpayer. The processes for amending income tax self-assessment (ITSA), corporation tax self-assessment (CTSA) and value added tax (VAT) returns are different and there is no consistent method.

If a taxpayer wants to make an amendment to a filed tax return, in some cases it is possible to file an amended tax return. The period within which the amendments to tax returns can be made depends on the type of tax. For example, taxpayers can currently amend income tax self-assessment returns online, manually, or in the case of some amendments by phone. They do not need to make the amendment in the same format in which the return was originally made, so for example a person filing online could still make an amendment on paper or by phone. In some cases amendments to VAT returns may be made on subsequent VAT returns or in other cases they may need to be notified separately on paper.

Problems faced by taxpayers

HMRC held informal consultation meetings in February 2018 to discuss several tax administration topics, including amendments to returns. They realised that taxpayers are often confused by the different ways of making tax return amendments for different taxes and would prefer a uniform process. Taxpayers would prefer a wholly digital process for making amendments with opportunities to explain why they are making the amendment and to attach relevant documents. The process must include a receipt and acknowledgement from HMRC that they have noted the amendment. HMRC must also have a process for a situation where an agent is taken on by a taxpayer while an amendment process is being carried out.

The UK government is inviting suggestions for a method of correcting tax returns that could be workable for all returns and could makes amendments transparent and simple. They are interested in devising a consistent digital approach that still includes provisions for digitally excluded people and those requiring digital assistance.

Call for Evidence

The Call for Evidence aims to gather more evidence on the issues faced by taxpayers when making an amendment to a return. This will help HMRC to understand whether alignment of the methods of amendment across the taxes can function effectively. Responses to the Call for Evidence will be used to develop policy solutions to issues arising in relation to the amendments to tax returns.