Mala Kapacee runs the rule over the Tax Administration Framework Review, and questions whether it will make tax collection more efficient and fairer.
As often happens with a new government, tax collection is an obvious way to demonstrate to the public that the new government is ‘in charge’. Unfortunately, that often means handing HMRC new powers without a clear understanding of what the department can do with existing powers and why the current system is not working. Hint: even with the best tools, the unskilled will only do mediocre work.
On 30 October 2024, HMRC issued a new consultation to explore “whether HMRC’s approach to correcting mistakes… could be improved”. The consultation looks at two areas for change:
• Reform of HMRC’s existing powers; and
• A new power to address non-compliance.
The government has said that the ‘need for change’ reforms are required because “the self-assessment population has grown over the last 10 years by 25%, from 9.2 million to 11.5 million…[this and other factors has led to] high volumes of relatively low value inaccurate repayment claims. HMRC has also seen an increase in situations where taxpayers have felt misled when using companies that claim to specialise in claiming tax refunds from HMRC.”
Download the full article below: