All material subject to strictly enforced copyright laws. © 2022 ITR is part of the Euromoney Institutional Investor PLC group.

HMRC talks UK senior accounting officer compliance

hmrc-small2.jpg

60 SECOND READ: International Tax Review talks to HMRC about senior accounting officer guidance, one of the UK tax authorities’ key compliance measures.

  International Tax Review: Why did HMRC update its SAO guidance earlier this year?

HMRC: It was updated for two reasons. Firstly, the original guidance did not accord with the standard style and format of HMRC guidance. This was because the legislation was introduced quite quickly and as such, the attendant guidance also needed to be prepared in the same time scale to support it. This made it difficult to recognise all issues that may arise. Secondly, the legislation has been in operation for some time, during which a few issues have arisen that were not envisaged at the time of writing the original guidance. The updated guidance has therefore been able to address these. Indeed, if new issues arise in the future the new guidance will be amended as necessary.

ITR: Have there been any unforeseen problems that have come up relating to how the guidance operates?

HMRC: No, there haven’t been any problems relating to how the guidance operates. Indeed, positive feedback has been received from a number of external sources.

ITR: How is HMRC helping taxpayers to comply?

HMRC: The taxpayers to whom the SAO legislation applies will be the very largest UK companies and groups of companies. They have allocated to them a designated HMRC caseworker, often known as a Customer Relationship Manager (CRM). The implementation and requirements of the legislation will be a regular topic of conversation during meetings between the designated caseworker and the company or group.

ITR: Are there any tweaks to the guidance planned for the near future?

HMRC: Yes, there are a few, with the main one addressing the calculation of turnover for insurance companies. (The amount of turnover is one of the alternative tests to see whether a company comes within the SAO legislation. The other is a balance sheet asset test.) As above, HMRC guidance is constantly updated to reflect new issues and revised thinking.

ITR: What is the likelihood that there will be a time when SAO rules won’t be required?

HMRC: Nothing can be ruled in and nothing can be ruled out, but there is no thought at present that the SAO legislation would be repealed.

more across site & bottom lb ros

More from across our site

Several tax chiefs shared their administrations’ latest digital identity tracking systems and other tax technologies at the OECD’s annual meeting of authorities.
Businesses welcome the UK’s decision to scrap the IR35 reforms but are not happy about the time and money they have wasted to date.
Energy ministers agreed on regulations including a windfall tax on fossil fuel companies to address high gas prices at an extraordinary Council meeting on September 30.
The European Parliament raises concerns over unanimity in voting on pillar two, while protests break out over tax reform in Colombia.
Ramesh Khaitan speaks to reporter Siqalane Taho about tax morality, transfer pricing regulations, Indian tax developments, and the OECD’s two-pillar solution.
Join ITR and KPMG China at 10am BST on October 19 as they discuss the personal, employment, and corporate tax-related implications of employees working from overseas.
Tricentis and Boehringer Ingelheim, along with a European Commission TP specialist, criticised the complexity of pillar one rules and their scope at an ITR event.
Speakers at ITR’s Managing Tax Disputes Summit said taxpayers can still face lengthy TP audits, despite strong documentation preparation
Gig economy companies in New Zealand will need to fully account and become liable for the goods and services tax of underlying suppliers on their platforms, under new proposals.
Join ITR and Thomson Reuters at 2pm (UAE) / 11am (UK) on October 13 as they discuss how businesses can prepare for Tax Administration 3.0 and future-proof against changes such as e-invoicing and increasing digitisation.
We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree