- In 2021, the previous government launched a wide review of how the tax administration framework could be improved. This work continues to date via a number of consultations in varying stages of progress.
- In 2023-2024, the previous government consulted on several areas within the tax administration framework review, some of which were progressed at the Autumn Budget 2024, while on others the status is not clear.
- The Tax Administration Framework Review: Creating innovative change through new legislative pilots – it is not clear how the current government intends to proceed.
- Simplifying and modernising HMRC’s Income Tax services through the tax administration framework review - the previous government, in the summary of responses, broadly acknowledged the need for HMRC to expand the range and scope of its digital services while highlighting the need for a provision for digitally excluded taxpayers and summarising legislative changes required to support a digital by default approach; however it is not clear how the current government intends to proceed.
- The Tax Administration Framework Review: information and data – while the previous government had not published a summary of responses, the current government announced its intention to consult, in early 2025, on modernising how HMRC acquire and use third-party data to make it easier for taxpayers to get tax right first time.
- The Tax Administration Framework Review: enquiry and assessment powers, penalties, safeguards - the government confirmed its intention to consult on three specific aspects: potential reforms designed to make it quicker and easier for taxpayers to correct mistakes early; opportunities to reform HMRC’s use of behavioural penalties to make these simpler and more effective; and ways to improve taxpayer access to alternative dispute resolution and statutory review to help resolve more disputes before they reach tribunal.
- At the Autumn Budget 2024, the government stated its three priorities for HMRC: closing the tax gap, modernisation and reform, and improving customer service and shared its plans to engage with stakeholders before announcing, in spring 2025, a package of measures to simplify tax administration and improve the customer experience.
- To give businesses more certainty and encourage investment and growth, the government has published a Corporate Tax Roadmap, with a number of commitments, such as capping the corporation tax rate at 25% and maintaining several key features. The Roadmap also outlines areas where the government intends to consult including a new process for advanced assurance for major projects and on widening the use of advanced clearances in the R&D Relief.
- Timing: The consultations on legislative pilots and information and data both closed on 20 July 2023, no summary of responses has yet been published. The summary of responses to the consultation on simplifying and modernising income tax services was published in February 2024. A number of new tax administration-related consultations are expected in spring 2025: HMRC’s use of third party data, a new process for increased advance certainty for investors in major projects and the use of advance clearance in the R&D relief. The timing of the new consultation on HMRC’s correction powers has not yet been confirmed.
Resources (click to open)
- Corporate Tax Roadmap 2024 - GOV.UK (HMT, October 2024)
- Autumn Budget 2024 (the Red Book, page 123 ‘Closing the tax gap’)
- The Tax Administration Framework Review: enquiry and assessment powers, penalties, safeguards (HMRC, summary of responses October 2024)
- Simplifying and modernising HMRC’s Income Tax services through the tax administration framework review: Summary of responses - GOV.UK (HMRC, February 2024)
- The Tax Administration Framework Review: information and data (HMRC, consultation, closed July 2023)
- The Tax Administration Framework Review: creating innovative change through new legislative pilots (HMRC, consultation, closed July 2023)
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