HMRC has released a personal policy paper, Making tax easier, outlining how it plans to reduce the administrative burden on taxpayers who currently have to complete an annual self-assessment tax return. The document explains how taxpayers will be able to view and manage their tax information in an online digital account as part of the much-heralded ‘end of the tax return’.
However, campaigners for those on low incomes say digital tax accounts can make complying with tax obligations easier but filling in a paper return must always be an option. Anthony Thomas, chairman of the CIOT’s Low Incomes Tax Reform Group, said: ‘It is essential to retain the ability to choose between digital and more traditional channels of communication, such as paper. The transition to a digital tax account will have to surmount a number of challenges. How will it interact with the plethora of other digital accounts with which citizens will be expected to interact with government (universal credit, verify, tax-free childcare, and so forth)? If the information to be used by HMRC to pre-populate the digital accounts is itself not accurate and up-to-date, it will be more difficult for unrepresented taxpayers to handle, not easier. And above all, for the substantial minority who have never accessed the internet, paper must remain a valid option and not an afterthought. No-one should be forced to file online to comply with their tax obligations.’
HMRC has released a personal policy paper, Making tax easier, outlining how it plans to reduce the administrative burden on taxpayers who currently have to complete an annual self-assessment tax return. The document explains how taxpayers will be able to view and manage their tax information in an online digital account as part of the much-heralded ‘end of the tax return’.
However, campaigners for those on low incomes say digital tax accounts can make complying with tax obligations easier but filling in a paper return must always be an option. Anthony Thomas, chairman of the CIOT’s Low Incomes Tax Reform Group, said: ‘It is essential to retain the ability to choose between digital and more traditional channels of communication, such as paper. The transition to a digital tax account will have to surmount a number of challenges. How will it interact with the plethora of other digital accounts with which citizens will be expected to interact with government (universal credit, verify, tax-free childcare, and so forth)? If the information to be used by HMRC to pre-populate the digital accounts is itself not accurate and up-to-date, it will be more difficult for unrepresented taxpayers to handle, not easier. And above all, for the substantial minority who have never accessed the internet, paper must remain a valid option and not an afterthought. No-one should be forced to file online to comply with their tax obligations.’
