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Mark McLaughlin thinks it's time for HM Revenue & Customs to embrace the Digital Age.

The UK's tax system continued to be dragged kicking and screaming into the electronic era on 6 April 2013, with the introduction of PAYE Real Time Information (RTI).

For all its forecast teething problems, RTI was really inevitable. The administration of PAYE was in urgent need of modernisation, although it must be said that ultimately the driving force behind the introduction of RTI arose from the state benefits system, and Universal Credit in particular. I doubt that employers are out of the woods yet, as transitional difficulties are likely for many. However, I predict that in a year or two, RTI will be heralded as a success, not only for PAYE purposes, but also in terms of facilitating a modern benefits regime.

Of course, RTI is only one (albeit a hugely important one) in a series of steps towards a completely electronic tax system. HMRC is understandably keen to move tax compliance and administration online as much as possible. It is quicker, cheaper, and probably requires far fewer personnel than a 'paper' system.

It is essential in my view that HMRC now fully embraces email as a form of communication. Its use by individuals and businesses is now commonplace, and part of everyday life. Emails are here to stay. For all the difficulties and challenges of email communications, such as security and privacy, HMRC must deal with those issues, and embrace emails as a quicker and more efficient form of communication than the postal service. How many tax advisers have received correspondence from HMRC dated a week or two (or perhaps even longer) earlier? Emails potentially avoid such problems.

HMRC started the electronic revolution for tax purposes, and as mentioned has now taken another important step with the introduction of RTI. Now it needs to finish the job and address its email service, by recognising the popularity of emails as a communication medium, and delivering a facility that meets the needs of taxpayers and agents alike.

Best wishes,

Mark McLaughlin 

Managing Editor