HMRC propose to use third party information more effectively to make compliance easier for taxpayers.
In this consultation, HMRC are proposing to use third party information more effectively to make compliance easier for taxpayers. Typical third parties in this context are banks, building societies and pension providers. The proposal is to gain access to third party information so that tax can then be calculated with less involvement from the taxpayer. The overall aim is to eliminate any over or under payments of tax and ensure the personal allowance is being used effectively.
The overarching principles of this consultation are as follows:
By 2020 HMRC are hoping to be able to obtain information on shares and dividends as well as property income so that it pre-populates the digital tax account. The intention is that for most taxpayers, their role will become one of reviewing information already contained in their digital tax account and ensuring it is correct.
The closing date for responses to this consultation is 7 November 2016.
Please contact us using the details below if you would like any further information on this consultation or our response.
Tel: +44 20 73115709
Tel: +44 20 73114330