Tax Administration and Maintenance Day

Summary

The government has taken the following steps to simplify the tax system:

Simplification and modernisation

• Help to Save: The government has announced an extension of the Help to Save scheme until April 2025 and plans to simplify it. A consultation on the scheme design is being published.
• Modernisation of the Stamp Taxes on Shares framework: A consultation is being published by the government to modernise and digitise the framework for Stamp Taxes on Shares, seeking views on proposals to achieve a simple, clear, and efficient tax system.
• Information & Data: The smarter use of data, including from third parties, has the potential to improve tax administration for individuals and businesses and enhance HMRC's compliance capabilities. A call for evidence is being made to standardise and simplify data provision through updated legislation while ensuring appropriate protection of taxpayer information.
• A legislative approach to piloting: A discussion document is seeking views on a new pilot testing approach known as a "sandbox" for HMRC to test changes. The document will examine potential models for sandbox testing, along with associated opportunities, challenges, and necessary safeguards.
• Customs treatment of post and parcel exports: A consultation on proposals to enhance the customs treatment of post and parcel exports is being published by the government. The aim is to provide advantageous customs facilitations for low-value post and parcels while ensuring a level playing field for exporting low-value goods.

Tackling the tax gap

• Tackling non-compliance in the umbrella company market: The government will soon release a summary of responses to the 2021 call for evidence on the umbrella company market. Additionally, a consultation on regulating umbrella companies and addressing non-compliance in the market will be published.
• Tackling promoters of tax avoidance: The government is releasing a consultation on the introduction of a new criminal offence for tax avoidance promoters and fast-tracking the disqualification of directors of companies engaged in promoting tax avoidance, as previously announced during Spring Budget.
• Repayment Agents: Starting from 2 May 2023, repayment agents will be required to register with HMRC within a three-month period.

Further tax policy and administration

• National Insurance credit changes: The government acknowledges that parents who have not claimed Child Benefit may lose their eligibility for a full State Pension in the future, and will resolve this issue by providing a retrospective National Insurance credit. Additional information on the next course of action will be released in the near future.
• Plastic Packaging Tax: The government plans to launch a consultation later this year to allow a mass balance approach in calculating the percentage of recycled content in chemically recycled plastics for the Plastic Packaging Tax.

Other documents and written statements

• The Financial Secretary, Victoria Atkins's statement
• Tax administration and maintenance summary: Spring 2023
• The taxation of decentralised finance involving the lending and staking of cryptoassets – consultation
• Reserved Investor Fund consultation – consultation  
• Charities tax compliance – consultation
• Construction Industry Scheme reform – consultation
• Off-payroll working: calculation of PAYE liability in cases of non-compliance – consultation  
• Improving the data HMRC collects from its customers – consultation outcome

CIOT immediate reaction to key measures

• CIOT has welcomed a number of consultations launched today which could make parts of the tax system easier to navigate, but said there was nothing in today’s measures that most people would recognise as simplifying their taxes. More
• CIOT has also welcomed the launch of a consultation on cryptoassets, noting that it offers the prospect of greater clarity around the capital gains tax treatment of Decentralised Finance, or De-Fi, lending and staking services. More
• LITRG welcomes the government’s confirmation that it intends to address an issue faced by some parents and guardians who have not claimed Child Benefit and may have missed out on future entitlement to a full state pension as a result. However, they urge the government to ensure that those who may become eligible for backdated National Insurance (NI) credits are refunded any voluntary NI contributions made for relevant years. More