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.

Back to Autumn Statement 2016: Headlines and Highlights