There have been a number of recent legal challenges as to how HMRC deal with tax returns submitted voluntarily where the individual, trust, partnership or company had not previously registered with HMRC and/or had not been asked to submit a tax return.
The current law for the delivery of tax returns for individuals, trusts and partnerships is contained within sections 8, 8A, 12AA TMA 9170 and paragraph 3 Schedule 18 FA 1998.
The legislation does not cover the situation where a return is submitted to HMRC on a voluntary basis for earlier years and there was no statutory requirement to file a return.
To provide certainty that returns submitted on a voluntary basis will be accepted as valid returns, it is proposed that legislation will be introduced in Finance Bill 2018-19.
The introduction of the new legislation will provide certainty that the returns will be accepted as valid from a statutory basis.