The CIOT supports the review of the UK tax administration framework, although it would have preferred greater clarity around the long-term end goal in order that a clear roadmap could be developed. The CIOT believes:
TMA 1970 needs to be replaced by a new Taxes Management Act for all administrative legislation that is easier to find and follow for HMRC, taxpayers and professional tax advisers. HMRC should consult on changing the UK’s tax year as part of this review, and consider harmonising legislation and processes across taxes.
Registration requirements and processes should be as consistent and simple as possible. There should be a single system for taxpayers to use to register and deregister for different taxes, to track the progress of applications and appoint one or more agents. The government should explore the wider use of a single taxpayer identifier number which a person would use for all interactions with government, not just HMRC.
HMRC and the government should simplify the way tax liabilities are calculated and assessed where possible (for example, by reviewing the adjustments that are required to establish a tax liability, reforming basis periods and changing the UK’s tax year);
HMRC should use data and information to make tax compliance effortless for the majority: A rigorous and secure system for collecting and using data from third parties should be developed to pre-populate a taxpayer’s digital record, tax return etc, with full consultation and a roadmap and timeline setting out each stage of the journey. This should not, however, be at the expense of forgetting some of the more complex aspects of the tax system, even though they may only affect a minority.
It would be helpful if HMRC could introduce a better payment system for taxpayers to avoid the problems often encountered at the moment, such as using the wrong reference number or bank details which means that payments end up in the wrong place and cannot be matched with the correct liability. It should also be made easier to arrange set-offs of under and overpayments between different taxes.
It is essential for building and maintaining trust in the tax system that the way HMRC uses its powers and operates safeguards can be effectively monitored and subjected to appropriate oversight.
Alongside the CIOT response, the ATT has called for tax policies and legislation to develop in parallel with any new digital systems, to avoid placing more burdens on, or adding to the frustrations of, taxpayers. The ATT’s response to the tax administration framework consultation highlights the importance of developing tax policy jointly with digital teams who understand what can and cannot be achieved within existing digital systems, or what developments can practically and cost-effectively be added on.
The CIOT supports the review of the UK tax administration framework, although it would have preferred greater clarity around the long-term end goal in order that a clear roadmap could be developed. The CIOT believes:
TMA 1970 needs to be replaced by a new Taxes Management Act for all administrative legislation that is easier to find and follow for HMRC, taxpayers and professional tax advisers. HMRC should consult on changing the UK’s tax year as part of this review, and consider harmonising legislation and processes across taxes.
Registration requirements and processes should be as consistent and simple as possible. There should be a single system for taxpayers to use to register and deregister for different taxes, to track the progress of applications and appoint one or more agents. The government should explore the wider use of a single taxpayer identifier number which a person would use for all interactions with government, not just HMRC.
HMRC and the government should simplify the way tax liabilities are calculated and assessed where possible (for example, by reviewing the adjustments that are required to establish a tax liability, reforming basis periods and changing the UK’s tax year);
HMRC should use data and information to make tax compliance effortless for the majority: A rigorous and secure system for collecting and using data from third parties should be developed to pre-populate a taxpayer’s digital record, tax return etc, with full consultation and a roadmap and timeline setting out each stage of the journey. This should not, however, be at the expense of forgetting some of the more complex aspects of the tax system, even though they may only affect a minority.
It would be helpful if HMRC could introduce a better payment system for taxpayers to avoid the problems often encountered at the moment, such as using the wrong reference number or bank details which means that payments end up in the wrong place and cannot be matched with the correct liability. It should also be made easier to arrange set-offs of under and overpayments between different taxes.
It is essential for building and maintaining trust in the tax system that the way HMRC uses its powers and operates safeguards can be effectively monitored and subjected to appropriate oversight.
Alongside the CIOT response, the ATT has called for tax policies and legislation to develop in parallel with any new digital systems, to avoid placing more burdens on, or adding to the frustrations of, taxpayers. The ATT’s response to the tax administration framework consultation highlights the importance of developing tax policy jointly with digital teams who understand what can and cannot be achieved within existing digital systems, or what developments can practically and cost-effectively be added on.
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