In its response to HMRC’s consultation, ACCA argued that a standardised, fully tagged format for Corporation Tax computations could improve efficiency by triggering fewer enquiries from the tax authority and reducing the need for repeated taxpayer input.

Glenn Collins, head of technical and strategic engagement at ACCA, said any new obligations must remain proportionate, particularly given the difficult economic conditions facing UK businesses.

He warned: “Cumulative burden of regulation has the biggest impact on business. Parallel processes, overlapping obligations, and duplicate requirements make compliance much more time intensive.”

HMRC is also urged by ACCA to maintain flexibility in any new system. Christian Novak, ACCA policy manager, EEMA-UK, said: “ACCA views lock tags in software products as helping promote both consistency and standardisation.

“However, we would like to see more examples of how such requirements operate in real-world contexts. This includes the process that underpins alterations and the blocking of submissions.”

ACCA warns that the Inclusion of the term ‘approved’ poses some risk. Mr Collins said: “The proposals would see HMRC assume an expanded set of technical and operational responsibilities. While positive for transparency, such a list must carry the same meaning for HMRC, taxpayers, and agents.”

Any effective tax system has simplicity, certainty and stability as its cornerstones. When introducing new reporting requirements, HMRC should be mindful of these three principles and the repercussions on business.