Significant new obligations for taxpayers
The government is proposing to introduce a new legal obligation for taxpayers to correct errors in tax returns or documents provided to HMRC.
Under the proposals, HMRC would also acquire a new legal power to issue a correction notice, requiring a taxpayer to check their position and either correct an inaccuracy or explain why no correction is necessary.
Draft legislation was published for consultation over the summer and the outcome of that process is awaited. The government has indicated that the proposals will take effect from a date to be announced.
Why the proposals matter
Currently, it is not always clear whether a taxpayer has a legal obligation to correct an error in a tax return or other document provided to HMRC. Advisers and HMRC may take different views as to what is appropriate. For some advisers, there is no duty to correct an error which comes to light after the filing has been made. On this view, the act of filing
