When is a Minimum Tagging List not a Minimum Tagging List?
When it is an HMRC Minimum Tagging List?
OK, so it’s a long time since I wrote on this subject but I was compelled by the document I am currently reading. This week HMRC / Companies House emailed out a Detailed Tagging Information Document aimed at expanding upon the original Preparers and Developers Guide.
The paragraph that struck me is item 4.4 on page 5 out of 41 – it is the explanation of tagging choices when using the minimum tagging list. The point reads as follows
The use of minimum tagging should NOT be allowed to distort the choice of tags for particular data items. In other words, if a preparer is following minimum rather than full tagging, this should NOT lead to a different tag being chosen for an item under minimum tagging than would be chosen under full tagging.
For example, if a preparer following minimum tagging believes tag X is the correct tag for a particular item under full tagging, but tag X is not in the minimum tagging list, then the preparer may leave the item untagged. The preparer should not choose tag Y which is in the minimum list but is less appropriate for the data item, just to try to achieve tagging. (Clearly, if tag Y is equally appropriate, then it may be chosen.)
Preparers following minimum tagging MUST make their tagging choices when viewing the full taxonomy. Viewing the minimum tagging list in isolation from the full taxonomy is likely to lead to misunderstandings over the meaning of tags.
Whilst conceptually I understand the point being made and can agree with it as a theoretical point, the practicallities make it seem bizarre. Surely the point of the MTL was to save the preparer effort in tagging their accounts. They could compare their own accounts with a list of circa 1500 items rather than circa 4500 items. However this revised guidance suggests that they will have to look at potentially 6000 items now to make the correct decision?
Maybe I’ve missed something (happy to be corrected Peter) but I’m struggling at the moment. Otherwise it seems to be another push towards fully automated accounts production environments rather than using a tagging tool.
