Revenue's 'room for improvement'

The Inland Revenue has accepted there is room for improvement, after it received considerable criticism from the professional bodies for sending 'enabling letters' to small businesses.

The 'enabling letters' informed tens of thousands of small businesses that there could be an error on their tax returns, but failed to specify what that might be. As a result, many small businesses were worried that they were about to become the subject of a Revenue investigation, and some felt their advisers had made errors on their returns.

In effect, it was little short of a 'fishing exercise' from the Revenue and attracted fierce criticism, including a call from the Federation of Small Businesses to Chancellor Gordon Brown for an apology.

Room for improvement

Recently, the professional bodies met with the Revenue to pass on their feed-back of the situation.

A Revenue-authorised statement issued by the Chartered Institute of Taxation after the meeting said: "The professional representatives were fully supportive of the aims of the project but made suggestions as to how the exercise might be improved for future years. After a useful discussion at which all concerns were aired, the Revenue accepted that there was room for improvement.

"The Revenue also agreed to look at how the agents' concerns might best be addressed. It was accepted that early consultation with the professional bodies was essential in the early stages of developing work, and the Revenue have agreed to meet with the professional representatives again in December as part of ongoing Working Together arrangements, to discuss progress. "

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