The Association of Chartered Certified Accountants (ACCA) has backed HMRC’s plan for standardised, fully tagged digital company tax returns, but warned that added compliance must stay proportionate.
In its consultation response, the ACCA said a single, fully tagged structure for corporation tax computations could cut repeat data entry and help reduce follow‑up enquiries from HMRC.
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ACCA Technical and Strategic Engagement head Glenn Collins 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.”
The ACCA also called on HMRC to build flexibility into any redesigned system, rather than locking in rigid processes.
ACCA EEMA-UK Policy manager Christian Novak 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.’”
The ACCA said any new reporting rules should reflect what it sees as core features of a sound tax system: simplicity, certainty and stability, and urged HMRC to consider the wider impact on businesses as digital reforms progress.
Earlier this week, the ACCA supported the Financial Reporting Council’s potential adoption of an international standard on auditing for less complex entities.
The accounting body said the move would allow audits to better reflect the circumstances of smaller and less complex businesses.
