Importance of setting software standards

The start of the 21st century was when software came to the fore as the means of filing tax returns with HMRC. Businesses tax agents and HMRC’s two predecessor organisations had of course used computers to keep records and manage the tax system but the development of filing by internet started to transform tax reporting.

Today all VAT PAYE and corporation tax reporting is online along with almost all self-assessment returns. HMRC also provides digital online filing for many other taxes. Third-party software is used for about 90% of all tax filings with self assessment being the only major service where the HMRC portal is the main route for filings to be made.

The Tax Law Review Committee (a committee within the Institute for Fiscal Studies (IFS)) has published a paper to discuss the standards required of software and the responsibilities of...