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HMRC have released a call for evidence, 'Income Tax Self Assessment (ITSA) registration for the self-employed and landlords'. It seeks views on the case for reforming the registration process for ITSA for individuals with those sources of income.

At a glance

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:

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

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

Questions

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?


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