It’s recently been revealed that HMRC are set to cut its costs and reduce paperwork by no longer sending accountants and tax advisers copies of some mail which is sent to their clients.

The Chartered Institution of Taxation (CIOT) is none to pleased with this development and is concerned that it will end in far more work for small businesses, their accountants and HMRC itself.

“This is a seriously short-sighted move from the Revenue,” said CIOT Deputy President Anthony Thomas. “”Everybody recognises that there is pressure on all government departments to find savings wherever they can. But by keeping tax agents less well-informed about their clients’ tax obligations HMRC are likely to find they lose more money than they save.”

The documents involved in the cost-cutting are the PAYE coding notices (P2s) and tax calculations (P800s). HMRC estimates that by not sending copies of this mail, they will save £1.25 million. However, CIOT fear they have not foreseen how the increased number of enquiries from tax advisers, and a potentially higher number of incorrect tax returns may in fact swell their costs.

Mr Davis fumed: “It is particularly disappointing that this change is being sprung on taxpayers and their agents with more or less immediate effect and without consultation. We are calling on HMRC to reverse this short-sighted decision or at least halt it for proper consultation.”