Call for Evidence: Self Assessment registration

The call for evidence is seeking views on the initial interactions between individuals who are self-employed or are in receipt of rental income and HMRC and follows earlier calls for evidence entitled ‘The tax administration framework: supporting a 21st century tax system’ and ‘Timely payment’.

The aim is to understand whether:

• Bringing forward the point at which taxpayers are required to identify themselves to HMRC will help taxpayers stay on top of their tax affairs.
• Changes could help create a more efficient tax system that gives taxpayers clarity on their obligations.
• Earlier registration could lead to earlier entitlement to additional benefits.
• The benefits of Making Tax Digital could be accessed sooner.

The hypothetical changes to the registration system on which views are sought include:

• Reducing the notification deadline to two, three or four months after the tax year end.
• Changing the obligation to notify based on commencement of the income source rather than the tax year.
• Notification based on a turnover threshold.
• Whether third party data could be used to increase awareness of obligations.
• Encouraging use of digital record keeping and integration with tax reporting.
• Increased online interaction with taxpayers.

Responses can be made by email to: This email address is being protected from spambots. You need JavaScript enabled to view it. by 22 March 2022.

Useful guides on this topic

New business: Sole trader compliance checklist
Starting in business? A new business registration checklist.

Call for Evidence: Tax Administration Framework
The call for evidence seeks views on how the tax administration framework could be reformed to provide a better experience for individuals and businesses with a view of reducing the tax gap and providing flexibility to adapt.

Call for Evidence: Timely payment
HMRC have opened a new call for evidence about the timely payment of Corporation Tax by small companies, and Income Tax. It seeks views on the opportunities and challenges of introducing in-year calculation and payment of these taxes.

External Links

Call for evidence: Income Tax Self Assessment registration for the self-employed and landlords

Summary of call for evidence questions

Question 1 – How simple and well understood are the current legislation and processes for notifying liability and registering for ITSA? What are the benefits and/or drawbacks of the current system?

Question 2 – If you have experienced registration processes across different UK taxes or internationally please tell us more about how they compare. What works well and what could be better?

Question 3 - What are your experiences of closing an ITSA record of self-employment or property income? Is it easy to understand and complete?

Question 4 – What difficulties do taxpayers new to ITSA face in complying with their obligation to notify liability? What are the causes of these issues?

Question 5 – How do customers new to self-employment or property income learn about the ITSA registration process and associated tax obligations? What are the issues with this?

Question 6– What challenges do taxpayers experience as a result of the delay between a business starting and the deadline for notification?

Question 7 – Are taxpayers clear on what trading is, and when they started or stopped trading? What factors about trading make it difficult to decide whether or not to register?

Question 8 - What are taxpayers’ experiences of interacting with different government departments when starting self-employment?

Question 9 – Do you agree that chapter 3 sets out the challenges presented by the current registration system? Are there others?

Question 10 – Are these the right options for changing the obligation? Which is better? Are there others?

Question 11 - What is the right period after the start of the new self-employment or property income for the obligation to be triggered?

Question 12 - Do these ideas for using intermediaries and third party data to improve tax registration merit further exploration? Are there others?