HMRC follows up on provisional 2021/22 tax returns
By Chris Campbell, Head of Tax (Tax Practice and Owner Managed Business Taxes)
15 August 2023
As HMRC follows up on provisional 2021/22 income tax returns, we look at the letters that are being sent to agents regarding this.
As in previous years, tax practitioners may not necessarily have had the final information required to enable them to complete 2021/22 income tax returns for their clients before the 31 January 2023 deadline. In such cases, tax returns will have been submitted to HMRC using provisional figures.
HMRC has made us aware that it will be contacting tax agents this month (August 2023) who have submitted 2021/22 tax returns using provisional figures. This will not be a formal enquiry or compliance check at this stage, but more of a reminder that final figures and amended returns (removing the provisional figures marker) need to be submitted.
HMRC intends for the letter to be a way of engaging specifically with tax agents who have multiple clients that they have submitted provisional returns for. To assist such agents with finalising and submitting final figures, the HMRC Agent Compliance Team can provide them with a redacted list of clients who have submitted provisional figures to review, upon request.
It should be possible for agents to respond to the letter by email, and HMRC’s normal email protocols will apply. As such, it will be necessary for the agent to confirm that the client understands and accepts the risks of using email, is content for financial information to be sent by email, and is content for HMRC to send the email attachments to the agent by email.
The letter being sent to agents is based on the following template.
Cases where actual figures are known
In cases where the agent is now in a position to update their client’s 2021/22 tax return, HMRC is asking for the amended return to be submitted by 30 November 2023. This should remove the provisional figures marker, as noted above.
Cases where actual figures are not yet known
In some cases, the tax agent will not yet be in a position to provide final figures. HMRC is asking agents to obtain the information as soon as possible. Amended returns using the final figures, and removing the provisional figures marker, are expected to be submitted by 31 December 2023.
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