Article

20 August 07

End of the road for SDLT CD-Rom

by James Ness

HMRC is phasing out the processing of land transaction returns completed using its CD-ROM

There are currently three methods of submitting an SDLT return – paper, 2D barcode printed returns produced by the SDLT CD-ROM, and SDLT Online. A third of land transaction returns are now submitted online. This is not surprising given the benefits of being able to print your SDLT 5 certificate in your own office although, sadly, reliability of the online system remains an issue.

For those using the CD-ROM, a significant number of 2D barcode returns generated by the CD-ROM process fail to scan and need to be captured manually (rekeyed by HMRC at their processing centre), with resultant consequences for HMRC resources and delays in the issue of certificates.

Accordingly HMRC have advised that with effect from 16 July they stopped issuing new SDLT CD-ROMs, as part of a phased withdrawal of the CD-ROM submission channel. From 1 November 2007 HMRC will begin returning any land transaction returns completed using the HMRC CD-ROM that have failed to scan (rather than manually keying them as at present). Those that are successfully processed will continue to be accepted after that date but, because of the advantages of the online channel, HMRC have made it clear that it is their intention in due course to withdraw the CD-ROM submission channel completely.

HMRC appreciate that the eventual withdrawal of the CD-ROM will have an impact on some practitioners, for example through the need to make IT changes and to train staff. To help with this, they have produced a support pack and will also be running events to assist and encourage CD users in their transition to SDLT online.

While the Society is obviously disappointed at the withdrawal of the CD-ROM, particularly given that the online channel is not 100% reliable, members are advised to sign up for the SDLT online service sooner rather than later to minimise disruption to their firms and their clients.

James Ness

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