HMRC Consults on Modernising Tax Administration
We published two consultation documents and accompanying Impact Assessments on 19 June representing the next stage of a programme of consultation and legislative change to provide a modern and effective framework of law and practice for HMRC. All taxes and duties administered by us are within the scope of the consultations, with the exception of tax credits, child benefit and customs duties.
Modernising Powers, Deterrents and Safeguards: Meeting the obligations to file returns and pay tax on time explores why taxpayers fail to file their returns, or pay the tax they owe, on time, and how HMRC can help them to meet their obligations. It also discusses an aligned approach to penalties – to encourage timely filing and payment – alongside the appropriate taxpayer safeguards.
This is the third stage of the Review of Powers’ work to modernise and align civil financial penalties across all of HMRC’s taxes. The first substantial measure, legislated in Finance Act 2007, was a single new penalty regime for incorrect returns for Income Tax, Corporation Tax, Pay As You Earn (PAYE), National Insurance Contributions (NICs) and Value Added Tax (VAT) (the main taxes). Provisions included in Finance Bill 2008 will extend this approach to penalties for incorrect returns for other taxes and penalties for failing to notify new taxable activities.
The closing date for responses to this consultation is 11 September 2008 and comments can be sent by
- fax – 0207 147 2375
- post – HMRC Powers Review, Room 1/72, 1st Floor, 100 Parliament Street, London, SW1A 2BQ
Interest – Working towards a harmonised regime complements the work of the Review of Powers and considers the case for harmonising and simplifying the rules on interest charged by HMRC on tax paid late, as well as interest paid by HMRC on overpayments. It examines the principles that might underpin a modern interest regime that is clear, simple and easy for taxpayers and their advisors to understand.
The closing date for responses to this consultation is 11 September 2008 and comments can be sent by
- fax – 0151 703 8452 (FAO Katie Lunt)
- post – Katie Lunt, HMRC, Tax Administration Advice Team, 4SW, Queens Dock, Liverpool, L74 4AA
