CHANGES proposed by HM Revenue & Customs will mean individual taxpayers have to understand all aspects of their tax obligations – even if they use an accountant.

That’s the message from Cleckheaton-based chartered accountancy firm Clough & Company.

The warning follows HMRC publishing plans to simplify an existing concession under which HMRC write-off tax arrears when it has made mistakes or failed to act on information submitted.

Nigel Westman, partner of Clough & Company, said: “These changes are one of the biggest developments to come out of HMRC in recent years and will require taxpayers to understand a lot of the complexities and vagaries of our tax system.

“The concession currently enables HMRC to write off tax, usually for tax years ending more than 12 months ago, if it has failed to make “proper and timely use” of information in its possession and it was reasonable for the tax payer to believe their tax affairs were in order.

“Although HMRC says it plans to make the concession more user-friendly, the proposed changes mean this will no longer apply for mistakes made by HMRC.

“This means full responsibility for making sure all information is accurate will lie with the taxpayer, even if they have authorised someone to act on their behalf when it comes to their financial affairs. This includes telling HMRC about changes in circumstances that will affect payments or claims and checking tax codes to ensure all information is up to date. Also taxpayers will be expected to record details of the dates they contact HMRC and the name of the person they speak to.”