HMRC Discussion into Modernising the Tax SystemFriday, November 18th, 2011
On 14 November 2011, HMRC issued a 12-week discussion paper entitled ‘Modernising the Administration of the Personal Tax System’, with a very short consultation period of 12 weeks. This is aimed particularly at individual taxpayers, although employers and representative bodies have been encouraged to participate as well.
The whole discussion document is with the intention of increasing the understanding and ‘transparency’ of the current tax system, so that employees are more aware of the tax that they pay. This will be done through the use of online and mobile technology, ‘to improve the customer experience’.
Interestingly, the document makes some bold statements as they look at HMRC’s position in 2014, namely:
- Higher accuracy, which will come as a result of the introduction of HMRC’s National Insurance and PAYE Service (NPS) and the exchange of data via RTI
- A cleared backlog of PAYE cases with HMRC working on only three previous tax years
- Deducting the correct tax in the current tax year, whilst getting the correct codes in preparation for the next tax year.
As regards increasing transparency, HMRC talk about the proposals announced in the 2011 Budget – the personal tax calculator (also to be available as a ‘phone app’) and individual P2s available online for Self Assessment individuals. Building on these, there are examples of tax systems for individuals in Ireland and Denmark, all leading to a consolidation of the questions in Part 4 of the document.
- HMRC – Modernising the Administration of the Personal Tax System
- Payroll Help 17 July 2011 - Views sought on integration of Income Tax and NICs