1. Modernising HMRC Online Services – Implementing Lord Carter’s Recommendations Helen M. Smith (Carter Programme Communications & Stakeholder Engagement) CIPFA VAT Committee meeting, 14 th December 2006

2. Context - Growth of online filing Online returns received 2002 to date (Nov 2006 - part year figures):

3. Carter Report - aspiration HMRC to aim for universal electronic filing of tax returns by businesses and IT literate individuals by 2012

4. Summary of Carter’s recommendations Businesses have to file electronically for CT, VAT and PAYE in-year forms in phases from 2008 Businesses to pay electronically for VAT and CT in phases from 2008 Changes to Income Tax SA, including differentiated paper and online filing dates from 2008 and withdrawing approval of SA paper substitute returns from 2007-08 Tying the enquiry windows for ITSA and CT returns to the date of submission Joint filing facility with Companies House

5. Do it online – how you can benefit Frees your time to conduct higher value business and serve clients better Fit with 21 st century business processes and technology Government saves on processing costs, freeing resource for improved services Real time data means fewer errors, greater speed and certainty Financial benefits to taxpayers estimated £175 – 247m pa from 2012 Ability to view your clients’ accounts at a time to suit you

6. Carter prerequisites (1) Robust services: “The most important thing that HMRC needs to do, to improve online services, is to focus on building robust services…this is a consistent message from current and potential users…the funds and resources available for online services should be focused on improving the existing services so that they better meet customers’ needs.”

7. Carter prerequisites (2) Strong relationships: Successful implementation will depend on collaborative working and partnership between HMRC and businesses, professional advisers & agents, software developers and other stakeholders.

8. What this means for consultation Collaborative working should maximise benefits for all We need to understand your needs and to make you aware of key design phases Not last chance – but a valuable current opportunity to raise critical IT issues We want to ensure right input at the right time

9. Some key dates: Definition of requirements until end January 2007 Finance Bill (Spring) 2007 – primary legislation Following Finance Act (late Summer) 2007 – secondary legislation March 2007 to March 2008 – detailed design, build and test of key IT April 2008 – first key implementation date

10. Working in partnership We need to work in partnership with you: –using established channels where possible (e.g. Working Together); and –using dedicated Carter activity to get your input to priorities, and prepare you and your clients prior to implementation What would be most useful to you and your clients? What are the priority issues and areas for investment?

11. Helen Smith - helen.m.smith@hmrc.gsi.gov.uk 020 7438 4273helen.m.smith@hmrc.gsi.gov.uk Contacts Julian Hatt - julian.hatt@hmrc.gsi.gov.uk 0117 907 1264julian.hatt@hmrc.gsi.gov.uk