Professional services company BDO has labelled the content on the UK HM Revenue and Customs’ (HMRC) recently launched compliance tool as “generic”. 

Last week, the HMRC the Interactive Compliance Guidance tool to aid businesses and individuals in navigating compliance checks.  

The Interactive Compliance Guidance tool aims to consolidate existing compliance guidance and instructional videos.  

Dawn Register, a tax dispute resolution partner at BDO, noted that while the tool offers useful “general signposts,” navigating the complex rules may necessitate professional advice.  

The tool aims to simplify finding information on why HMRC may request specific documents, handling health or personal issues during checks, appointing a representative, disputing decisions, and settling tax assessments or penalties. 

Register commented, “Unfortunately, tools like this can seldom be comprehensive and can also go out of date quickly, so HMRC will need to monitor and update them regularly to ensure they remain correct.” 

The primary challenge, according to the BDO partner, is the multitude of variables for different taxes, with any compliance check potentially covering several taxes simultaneously. 

HMRC’s ongoing Tax Administration Framework Review is assessing how to align its appeal, penalty, and compliance rules across different taxes.  

Until these rules are aligned, Register explained, a single tool for compliance checks will have limited utility.  

She added that the tool’s content is currently “generic”, relying on users to correctly identify and apply the relevant advice to their circumstances. 

For instance, direct tax appeal videos on YouTube explain Alternative Dispute Resolution (ADR) and Statutory Review but do not guide users in identifying the correct route or timing for their use.  

Register further noted that the complexity of the tax system and its sometimes-illogical outcomes pose significant challenges in making guidance comprehensive, even for those on relatively low incomes. 

She concluded: “While we welcome the consolidation of guidance and easy access, this is no magic wand to help people understand their tax obligations and ensure tax compliance.  

“For some people, it could even cause further stress and complications if the self-directed advice is wrong. This is a good effort by HMRC, but the tool is no substitute for personalised and detailed tax advice from a qualified and regulated professional tax adviser.”