As part of Spring Budget 2023, a consultation has been issued entitled, 'Simplifying and modernising HMRC’s Income Tax services through the tax administration framework'.
At a glance
This consultation follows a number of prior consultations and calls for evidence including:
This latest document sets out the Government’s plans to modernise Income Tax services covering Pay As You Earn and Income Tax Self Assessment and invites feedback from stakeholders.
Key themes for modernisation include:
- Digital by default for specified letters and forms.
- Making digital processes, including the Single Customer Account, more efficient.
- Increasing awareness of the digital processes that are available.
- Considering how coding notices and changes to circumstances can be streamlined.
- Understanding the issues that taxpayers and agents face in identifying reporting requirements.
Feedback is requested by 7 June 2023.
Question 1: What barriers do you experience when accessing digital versions of the forms above that drive you to a paper option? Are there any particular forms/processes that cause major issues?
Question 2: How would you like HMRC to provide support and guidance to assist digitally able taxpayers with accessing digital versions of the forms above?
Question 3: What would be your preferred options for the digitally excluded to access non-digital services for the forms above?
Question 4: How can HMRC encourage more PAYE taxpayers to open digital tax accounts to help automate the repayment process?
Question 5: What safeguards should be in place for any new data HMRC collects?
Question 6: What specific processes or data points could be simplified to speed up information flow between employers, employees and HMRC when employees have a change of circumstance while maintaining the quality of data and keeping information secure?
Question 7: In what ways could advances in Information Technology allow for an alternative to the tax code or more real-time interaction between employer, employee and HMRC to ensure that tax and employee NICs deductions keep pace with changes as efficiently as possible?
Question 8: Would you support a change to require new ITSA registrations to be made online, with a digital by default approach to subsequent notices to file, and a requirement for annual returns to be delivered digitally?
Question 9: How much notice would taxpayers and agents need for this change, and how could HMRC best communicate it?
Question 10: Do you agree these are the main issues? Where possible please rank in order of magnitude/impact.
Question 11: What other difficulties do taxpayers face in understanding and navigating the ITSA criteria?
Question 12: What additional complexity exists for taxpayers who are navigating multiple criteria or for those whose circumstances change frequently? Where possible please give examples, including how you think HMRC can resolve the issues.
Question 13: Are these the right changes and opportunities to be considering? Are there others?
Question 14: In what way will each simplify things for taxpayers?
Question 15: Which are better? Could you rank in order of preference or greatest improvement?