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HMRC have published two further consultation papers, as part of their work to modernise powers, deterrents and the accompanying safeguards.

The papers, entitled Modernising powers, deterrents and safeguards: A new approach to compliance checks and Modernising powers, deterrents and safeguards: Safeguards for Taxpayers, are available on the HMRC website (see below for link).

The first paper considers options for a new approach to compliance checks, while the second asks for views on the adequacy and effectiveness of current safeguards for taxpayers.

Currently, HMRC rely on provisions inherited from the predecessor Departments (the Inland Revenue and HM Customs and Excise), which evolved over a considerable period of time, and involve substantial differences between different areas and taxes.

The first consultation paper considers a possible compliance checking framework which would:

• align rules across income tax, corporation tax, VAT, PAYE and NICs, where doing so would bring more clarity, consistency and efficiency, and reduce costs for both taxpayers and HMRC;
• set out requirements and safeguards which distinguish between non-business and business taxpayers; and
• better align the time limits for making tax assessments for different taxes.

The second paper concentrates on:

• safeguards within non-tax legislation and non-UK tax legislation which ensure that HMRC comply with the legislation, and provide taxpayers with easy access to the underlying safeguards; and
• safeguards related to the administration of the tax system (e.g. the Civil Service Code, handling of appeals and complaints, guidance and codes of practice).

It will consider whether the safeguards are effective, and whether HMRC are doing enough to make taxpayers aware of the safeguards, and to implement them.

Link

HMRC: Further consultations on HMRC powers