HMRC have published their responses to their March 2021 Call for Evidence ‘The tax administration framework: supporting a 21st century tax system’.

The Call for evidence sought views on how the legislation, processes and guidance underpinning HMRC’s administration of the tax system could be reformed and updated as part of the Government’s 10-year tax administration strategy, ‘Building a trusted, modern tax administration system’. The overall aim is to provide a better experience for individuals and businesses, enable opportunities to further reduce the tax gap, and help build resilience and responsiveness to future crises.

Some respondents to the consultation highlighted disparities in treatment between different taxpayers and called for reassurance that HMRC apply a consistent approach to all taxpayers.

Many respondents were supportive of:

  • Simplification and reduced administrative burdens for all taxpayers, with a consistent approach where this benefits taxpayers.
  • Greater transparency from HMRC and use of discretion which is key to building trust.
  • Greater clarity and certainty from both legislation and guidance as current complexities undermine trust.
  • Use of the tax administration framework to support digital reform whilst supporting those who have problems using digital technology.
  • Proportionate sanctions for non-compliance with support for those who try to get things right and tougher sanctions for those who are deliberately or repeatedly non-compliant.

Respondents felt that any reforms should be introduced carefully and gradually with agents playing a key role.

No specific recommendations have yet been made by the government as a result of this review. HMRC have said only that they will “consider how best to develop, prioritise and sequence proposals for changes to the framework” and “develop a roadmap for future consultation and analysis”. However, as a result of the review progress is being made in several areas including:

Useful guides on this topic

Self-employment: Registering for Tax
You are self-employed, you have started working for yourself, what do you need to do to now? How to register for tax.

Penalties: Late Filing MTD
A points-based late submission penalty regime is replacing existing late submission penalties for VAT and Income Tax Self Assessment (ITSA) under Making Tax Digital.

Penalties: Late Payment MTD
Penalties for late payment of tax under Making Tax Digital for VAT and Income Tax.

External link

HMRC: The tax administration framework: Supporting a 21st century tax system Summary of responses 


Small acorn
If you like our content come and join us.

Thousands of accountants and advisers and their clients use www.rossmartin.co.uk as their primary TAX resource.

Register with us now to receive our unique FREE Tax Planning Tips and Advice Guide & our FREE OMB Newsletter.

 

 

Enjoying the Practical Tax content on www.rossmartin.co.uk? 

Sign up now to receive a unique FREE Tax Planning Tips and Advice Guide & our FREE Newsletter.

.Squirrel ad