- The government launched a consultation in March 2023 which explored how HMRC can simplify and modernise Income Tax services as part of its Tax Administration Framework Review. The purpose of the consultation was to seek views on the policy design and any suitable possible alternatives, before consulting later on more specific proposals for reform, if appropriate.
- The consultation document set out HMRC’s intention to move to a digital by default approach for some of its outputs. It also sought views on improving Pay As You Earn (PAYE) processes, and launched a review of the Income Tax Self-Assessment criteria.
- The consultation and its outcome will be of interest to taxpayers within PAYE and their employers, as well as to taxpayers within the current Self-Assessment regime.
- A summary of responses document was published on 15 February 2024, which broadly acknowledged the need for HMRC to expand the range and scope of its digital services but also highlighted existing issues with HMRC’s service levels in this area, and the need for any redesign to make adequate provision for taxpayers who are digitally excluded.
- This summarised planned legislative changes to support a digital by default approach, including law to require taxpayers to share digital contact details with HMRC.
- A further call for evidence on Modernising the Tax Administration Framework was released on 15 February 2024, and covers many of the same areas (including assessment and enquiry), which may delay the date at which a full analysis of the responses and future policy choices is published.
- Timing: the first consultation closed on 7 June 2023, and the summary of responses was issued in February 2024 but no timeframe has been released for implementing legislative changes. The call for evidence on the Tax Administration Framework Review: enquiry and assessment powers runs until 9 May 2024.
Resources (click to open)
- The Tax Administration Framework Review: enquiry and assessment powers, penalties, safeguards (HMRC open call for evidence, closes 9 May 2024)
- Simplifying and modernising HMRC's Income Tax services through the tax administration framework (HMRC consultation, summary of responses, 15 February 2024)
- Simplifying and modernising HMRC's Income Tax services through the tax administration framework (HMRC consultation, closed 7 June 2023)
