Government launches consultation package on HMRC powers and tax administration
The government has launched a wide-ranging package of consultations on tax administration, including proposals to strengthen HMRC's debt recovery powers, modernise tax agent regulation and expand the use of digital services. Several of the measures could have significant implications for taxpayers and advisers. What has been proposed?
One of the most controversial proposals would allow HMRC to recover low-value tax debts directly from taxpayers' bank accounts by deducting instalments, rather than requiring payment in full or court action. The government says the measure is intended to improve debt collection while providing safeguards for vulnerable taxpayers. The consultation package also includes further details of the planned registration regime for tax advisers, which will require agents dealing with HMRC to register formally. HMRC would have powers to refuse or suspend registration where there are concerns about an agent's conduct, as part of wider reforms aimed at improving standards in the tax advice market.
Alongside these measures are proposals to expand digital services and modernise the administration of the tax system. The government is seeking views on how technology can reduce administrative burdens while improving compliance and making it easier for taxpayers to interact with HMRC.
The consultations do not introduce immediate changes, but they provide a clear indication of the government's direction of travel. Businesses, advisers and representative bodies now have an opportunity to comment before legislation is drafted. Some of the proposals, particularly HMRC's ability to recover tax debts directly from bank accounts and the new regulatory framework for tax advisers, are likely to generate considerable debate. Businesses and advisers should consider responding to the consultations where the proposals could affect them.
Related Topics
-
HMRC targets “dodgy shops” in new compliance crackdown
The government has announced a new crackdown on businesses suspected of facilitating tax evasion, with HMRC increasing its focus on so-called "dodgy shops" used to enable tax fraud. What is HMRC targeting?
-
Mandatory payrolling of benefits in kind delayed
The government has revised plans to introduce the mandatory payrolling of benefits in kind from 6 April 2027, which will now be limited to company cars, vans, fuel and medical benefits. What's the full story?
-
Uber loses VAT margin scheme appeal
The Court of Appeal has ruled that Uber cannot use the Tour Operators Margin Scheme (TOMS) when accounting for VAT on its ride-hailing services. The decision could have significant implications for businesses that act as intermediaries when supplying services to consumers. What was the dispute about?
This website uses both its own and third-party cookies to analyze our services and navigation on our website in order to improve its contents (analytical purposes: measure visits and sources of web traffic). The legal basis is the consent of the user, except in the case of basic cookies, which are essential to navigate this website.