After the closure of the Office of Tax Simplification in 2023, HM Treasury and HMRC were set a mandate to focus “on simplifying the tax code”. In January of this year, the government published an update on progress made towards tax simplification. The Spring Budget 2024 contained further details of this work by setting out specific metrics which will be used to track progress being made, especially for small businesses and individuals.
From HMRC’s annual customer survey, a new survey, the government will track the views of small businesses and individuals on the ease of dealing with tax issues, and the ease of finding information. The government will also measure how easy taxpayers find it to deal with HMRC from a survey offered after using HMRC’s telephony or digital services. Lastly, the government will monitor HMRC’s estimate of the net change in cost to businesses of meeting tax obligations from fiscal event measures. These metrics will be kept under review and enhanced, taking into account feedback from stakeholders.
The Spring Budget 2024’s main red book publication also sets out several measures which deliver “further administrative reforms to make it easier for individuals and sole traders to meet their tax obligations by”. In summary, these are as follows:
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Easing the payment of inheritance tax before probate or confirmation - from 1 April 2024, personal representatives of estates will no longer need to have sought commercial loans to pay inheritance tax before applying to obtain a “grant on credit” from HMRC; and
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Investment in digital services - simplifying access for those who want to pay in instalments in advance via a Budget Payment Plan, or in arrears via a Time to Pay Arrangement from September 2025.
The government also badged the following Spring Budget 2024 measures as simplifying underlying tax rules:
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Abolishing the current tax regime for non-UK domiciled individuals;
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Announcing the end of the Alcohol Duty Stamps scheme;
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Abolishing the furnished holiday lets tax regime from 6 April 2025; and
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The forthcoming consultation on reform of Class 2 NIC.