Tax pros attack 'suicidal' cost-cutting measure

Tax professionals have reacted angrily to HMRC’s latest measure to reduce spending, calling it ‘short-sighted’ and ‘suicidal’.
As part of a Government-wide cost-cutting drive, the department has announced it is to stop issuing copies to tax agents of a selection of paperwork sent to clients.
The letters include the P2 PAYE coding notice and the P800 tax calculation form. Discontinuation of these two alone will save in excess of £1.25 million, the Revenue has estimated.
The Chartered Institute of Taxation (CIOT) expressed concerned that the reductions in mail will result in far more work for the taxman, taxpayers and their advisers, and will potentially lead to additional costs in excess of the amounts saved.
‘This is a seriously short-sighted move,’ said the CIOT’s deputy president, Anthony Thomas.
‘Everybody recognises there is pressure on all government departments to find savings wherever they can, but by keeping tax agents less well-informed about their clients’ tax obligations, HMRC… have not estimated the cost of dealing with an increased number of enquiries from agents, let alone that of dealing with the higher number of erroneous tax returns that is likely to result.’
‘It is particularly disappointing that this change is being sprung on taxpayers and their agents with more or less immediate effect and without consultation,’ added Mr Thomas.
‘We are calling on HMRC to reverse this short-sighted decision, or at least halt it for proper consultation.’
The Revenue apologised for making cuts that might be unwelcome, and claimed it had looked for savings ‘in those areas where there will be minimal impact on our customers [sic]’.