• The conversation on real time payment of tax should take a step back to focus initially on voluntary payments – however this should only take place once up to date evidence and analysis, including wider discussions with UK businesses and taxpayers is conducted by HMRC;
• This should explore the appetite for voluntary payment and clearly set out the case for moving to real time payments which should be the last stage in the UK’s move to its version of Tax Administration 3.0;
• HMRC should provide an update on the outcomes from building into its systems and messaging functionality which compares in-year tax calculations with payments on account due; and
• Tax complexity continues to be a very serious issue which not only threatens the ability of the UK Government to meet its 10 year tax administration strategy but is also a serious impediment to successful further and future digitisation of the UK tax system starting with Making Tax Digital for income tax in 2023 – a defined roadmap to tackle tax complexity, beginning with income tax first must therefore be established as a matter of urgency.

Although this call for evidence is badged as the opening of a conversation in this area with no decisions yet taken, it is clear that the Government is keen to move to a real time tax payments system in the future. The Institute will continue to put forward members views on this issue.