Proposal To Reform HMRC's Enquiry And Correction Powers – Balancing Efficiency With Complexity

A consultation proposing a number of reforms to HMRC's existing enquiry powers, and the introduction of a new power, closes later this month.

The "Tax Administration Framework Review – New ways to tackle compliance" is the latest in a series exploring novel ways to simplify the UK's tax administration system, making it more straightforward for taxpayers and enabling HMRC to allocate resources more effectively.

Background

Closing the "tax gap", the difference between the amount of tax owed and what is actually collected by HMRC, remains a key focus for the Government. Despite all the attention given to tax avoidance and evasion, the data shows that the bulk of the tax gap comes from individuals and small businesses making careless mistakes on their tax returns. These small mistakes add up collectively to large figures, and the changes proposed seek to tackle this issue.