Tax Administration and Maintenance - Spring 2023

On 27 April 2023 the Government released a number of new consultations, below we summarise the key points from the various reviews, reforms and announcements:

The Tax Administration Framework Review Creating Innovative Change Through New Legislative Pilots

HMRC is proposing a new piloting approach which would allow the creation of temporary legislation to suspend the usual tax administration rules for an identified section of the taxpayer population in time-limited pilot schemes.

The Tax Administration Framework review - Information and Data

Seeks views on how HMRC’s information and data-gathering powers, which underpin administration of the tax system, could be updated to enable digital transformation of taxpayer services, improve HMRC’s compliance capabilities and reduce administrative burdens.

Consultation: Stamp Taxes on Shares Modernisation

Seeks views on proposals to modernise the Stamp Taxes on Shares framework, which encompasses both Stamp Duty and Stamp Duty Reserve Tax.

Help to Save Reform

Seeks views from stakeholders on how the scheme could be reformed and simplified to ensure it: has longevity as a key savings product for working people on low incomes; encourages take-up in the target group; and provides the best value for taxpayers.

Consultation: Charities Tax Compliance

To explore reasonable and proportionate changes, with the charity sector, on how to reform some tax relief rules that do not work as intended. This will help tackle non-compliance and protect the integrity of the sector. Any changes would not detract from the overall generosity of the reliefs or be intended to catch out legitimate charities. This includes several areas including tainted charity donations, approved charitable investments, non-charitable expenditure and charity filing obligations.

Construction Industry Scheme Reform

Considers whether it would be appropriate to add VAT to the list of taxes HMRC must consider when undertaking the statutory compliance test for receiving or keeping Gross Payment Status.

Tougher Consequences for Promoters of Tax Avoidance

Proposals include a new criminal offence for promoters of tax avoidance who fail to comply with a HMRC notice to stop promoting an avoidance scheme and a proposal to expedite the disqualification of directors of companies promoting tax avoidance.

Off-payroll Working Calculation of PAYE Liability in Cases of Non-compliance

A possible change to allow HMRC to account for taxes already paid by an individual and/or their intermediary when calculating a PAYE liability due by a deemed employer where an error has been made in applying the off-payroll working rules.

Savers Set to Benefit from Simpler Tax System

A press release which states: ‘The government also wants to address the fact that some parents who have not claimed Child Benefit could miss out on building their state pension. Those affected will in future be able to claim National Insurance credit retrospectively as ministers move to tackle this issue.

When parents claim Child Benefit, they can also receive a National Insurance credit which helps them build their state pension. This is aimed at those who, due to caring responsibilities, are out of work or not earning enough to pay National Insurance, to ensure they are still able to do that.

The Government wants to ensure that parents who have not claimed Child Benefit are not disadvantaged when they start claiming their State Pension and is announcing a resolution for affected parents.

Parents do not need to take any action immediately. The government intends to legislate to allow eligible individuals to retrospectively claim National Insurance credit, and the next steps to be taken will be published in due course.’