In his Autumn Statement 2016 the chancellor announced a number of measures relating to tax administration.
Making Tax Digital
- In January 2017 HMRC will publish its response to the Making Tax Digital consultations together with provisions to implement previously announced changes.
Tax Simplification
- The government welcomes and has responded to the reviews the OTS has published this autumn, including on the alignment of income tax and NICs.
- The government has rejected the suggestion to move NICs onto an annual basis as this isn’t the right time for such a major reform.
- The OTS has now been asked to carry out reviews of the VAT system and Stamp Duty, in particular:
- VAT accounting simplifications for SMEs
- VAT calculations for partially exempt businesses.
- The complexity of the current VAT administration
- Simplification of stamp duty processes such as physical stamping of documents.
Tax Enquiries
- Following consultation, new legislation in FA 2017 will provide HMRC and taxpayers with earlier certainty on individual matters in large, high risk and complex tax enquiries.
The Budget v the Autumn Statement v the Spring Statement
- The Autumn Statement is to be abolished.
- In 2017 there will be a Spring Budget and Autumn Budget.
- From 2018 there will be a single Autumn Budget and a Spring Statement.
- The Spring Statement will:
- Respond to the OBR's forecasts
- Review wider economic and fiscal challenges
- Launch consultations.
- Not normally include policy changes.
- The chancellor will reserve his right to make fiscal changes at other times, should the need arise.
