Update on Tax Administration Framework Review

Last week, the Government published two documents as part of the Tax Administration Framework Review (“TAFR”) which represent the next steps in delivering the Government’s commitments to reform areas of tax administration. As outlined in the Government’s Tax Administration Strategy, the ambition is to create a tax system fit for the challenges and opportunities of the 21st century. 

The two documents published last week are as follows:

• A Summary of Responses to the Simplifying and Modernising HMRC’s Income Tax Services through the Tax Administration Framework Discussion Document. Chartered Accountants Ireland response to this Discussion Document is available in the Tax Representations section of our website as document 2023/12.  

This outlines the next steps in relation to the three sections in the Discussion Document:-  

• developing and promoting the use of HMRC’s digital services by implementing a digital by default approach whilst making alternative provisions for digitally excluded taxpayers;  

• improving Pay as You Earn processes which cause frustration for taxpayers; and  

• moving to digital registration for Income Tax Self-Assessment and reviewing the criteria used to determine which taxpayers are required to file a tax return. 

A new Call for Evidence on Enquiry and Assessment Powers, Penalties and Safeguards has been launched.  

This will run for 12 weeks and closes on 9 May 2024. According to the Call for Evidence, reform in these areas has the potential to simplify and modernise the tax administration framework relating to HMRC’s role to promote and enable compliance and respond appropriately to non-compliance whilst ensuring taxpayers’ rights are protected.  

The Government welcomes engagement from any individual, business, or organisation with views on how these powers, penalties and safeguards can be made more efficient, effective, and simpler to understand. 

HMRC is holding an online introductory session via Microsoft teams to discuss this Call for Evidence on Friday 1 March from 11-12. Please email HMRC if you would like to attend.  

Further workshops will be held during the second half of the consultation period to focus in detail on the different parts of the Call for Evidence. HMRC will communicate separately about these workshops.