Tax Administration Framework Review: dull sounding, but far reaching

HMRC’s ongoing Tax Administration Framework Review was initially intended to help create a ‘trusted modern tax administration’ but more recent efforts are also driven by HMRC’s response to a surge in inaccurate tax returns and claims that it sees as draining public funds and the adoption of online filing.

The latest tax gap is estimated at £39.8bn and has increased over recent years. While HMRC already have many powers assist them in closing this gap they are often time consuming to use with a disproportionate impact on taxpayers. To address this HMRC proposed several reforms in its 30 October 2024 consultation document The Tax Administration Framework Review: enquiry and assessment powers penalties safeguards. These include requiring more upfront information for claims streamlining Revenue Correction Notices introducing partial enquiries and empowering taxpayers to self-correct the...