Tax administration and maintenance day proposals

The government published 11 new consultations and calls for evidence on tax administration and maintenance day. Some of these consultations have a relatively short window for responding. The Tax Faculty has summarised each consultation and deadlines for input from members to help inform its responses. 

Off-payroll working (IR35): calculation of PAYE liability in cases of non-compliance 

If the client is found by HMRC to have made errors in determining the employment status of its off-payroll workers, the deemed employer (the client or an agency further down the supply chain) becomes liable for income tax and national insurance contributions (NIC) that should have been deducted from the fee paid to the off-payroll worker.  

The current legislation does not allow HMRC to set off amounts of tax and NIC already paid by a worker and their intermediary against the PAYE liability of the deemed employer. This consultation sets out HMRC’s considerations for, and invites views on, a potential alternative solution to address this issue. 

Please send comments on this consultation to Peter Bickley by Thursday 1 June. 

Cryptoassets 

Following on from its call for evidence on the taxation of the decentralised finance (DeFi) activities of lending and staking of cryptoassets, HMRC now seeks views on a potential new taxation framework.  

Please send comments on these proposals to Mei Lim Cooper by Thursday 1 June. 

The Tax Administration Framework Review: new legislative pilots 

HMRC is proposing a new piloting approach that would allow the creation of temporary legislation to suspend the usual tax administration rules for an identified section of the taxpayer population in time-limited pilot schemes. This discussion paper, Creating innovative change through new legislative pilots, is to consider the benefits and challenges of such an approach and the safeguards required. 

Please send comments on this suggested approach to Caroline Miskin by Thursday 29 June. 

The Tax Administration Framework Review: information and data 

This call for evidence focuses on potential updates to HMRC’s information and data gathering powers. It also looks at standardising data provision from third parties, designing more flexible legislation, considering pre-population of returns and simplifying powers. 

Please send comments to Caroline Miskin by Thursday 29 June. 

Construction industry scheme reform 

HMRC is consulting on: 

• whether it would be appropriate to add VAT to the list of taxes HMRC must consider when undertaking the statutory compliance test for receiving or keeping gross payment status; and
• reducing administrative burdens, including for landlord/tenant payments and multiple reporting requirements by certain groups. 

Please send comments on this consultation to Peter Bickley by Wednesday 28 June. 

Charities tax compliance 

HMRC is seeking views on several areas including: 

• tainted charity donations;
• approved charitable investments;
• non-charitable expenditure; and
• charity filing obligations. 

Please send comments on this consultation to Angela Clegg by Wednesday 28 June. 

Tackling promoters of tax avoidance 

HMRC is consulting on proposals to extend its existing powers for tackling tax avoidance promoters. These proposals include: 

• making the failure to comply with a promoters of tax avoidance schemes (POTAS) stop notice a criminal offence; and
• proposals to expedite the disqualification of directors of companies who are involved in the promotion of tax avoidance, including those who control or exercise influence over a company. 

Please send comments on these proposals to Richard Jones by Thursday 1 June. 

Modernisation of stamp taxes on shares 

HMRC is consulting on: 

• whether to have a single tax on securities rather than stamp duty and stamp duty reserve tax;
• proposals for the assessment and administration of any new single tax on securities; and
• proposals for key elements of any new single tax on securities including liability, tax base, geographical scope, compliance regime and exemptions and reliefs. 

Please send comments on these proposals to Angela Clegg by Thursday 1 June. 

Customs treatment of post and parcel exports 

HMRC is seeking to establish how to develop the customs treatment of low-value post and parcel exports to enable the smooth flow of these goods out of the UK while ensuring appropriate due diligence is applied. This aims to help protect the countries and territories we export to while complying with our international obligations. 

Please send comments on this consultation to Ed Saltmarsh by Thursday 29 June. 

Reserved Investor Fund 

It has been claimed that there is industry demand for a UK-based unauthorised contractual scheme aimed at professional and institutional investors, rather than the retail market. For the purposes of this consultation, this proposed new fund type is called the Reserved Investor Fund (RIF). In addition to considering the scope of the RIF, from a tax perspective, the consultation covers: 

• the design of a new tax regime for a RIF;
• the application of the non-resident capital gains rules to a RIF; and 
• the treatment of unauthorised co-ownership contractual schemes that would not fall within the RIF regime. 

Please send comments on the tax aspects of the proposals to Mei Lim Cooper by Friday 26 May. 

Help to save reform 

This consultation invites interested parties to comment on the existing design of the help to save scheme. HMRC wants evidence to help determine the extent to which the scheme serves its purpose and how it could be simplified to ensure it:  

• has longevity as a key savings product for working people on low incomes; 
• encourages take-up in the target group; and 
• provides the best value for taxpayers. 

Please send comments to Mei Lim Cooper by Thursday 1 June. 

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