19 May 2025
HM Revenue and Customs (HMRC) has released the summary of responses given by stakeholders for the consultation “New ways to tackle non-compliance”.
In the consultation, HMRC asked for feedback on the following suggestions:
- amendments to conditions for making claims
- reform of Revenue Correction Notices (RCN)
- introduction of a partial enquiry
- a new power requiring taxpayers to self-correct.
In the government’s response, they make note of the feedback stating that amendments to conditions for making claims would introduce additional burden and that partial enquiry powers could lead to uncertainly for taxpayers
HMRC stated the next steps as:
- reform of revenue correction powers
- approaches to taxpayer self correction
- longer term work to develop and test policy options to harmonise and simplify compliance powers across tax regimes
“The government is mindful that fundamental reform could take some time and believes there are ways to help address the challenges HMRC faces in tackling compliance for high volume low value risks more immediately. This includes through reform of its revenue correction powers and exploring the most efficient approaches to taxpayer self-correction. Progressing these reforms will help address current operational challenges, while also offering benefits to taxpayers through easier routes of correcting errors and mistakes. Development of these initial reforms will enable the testing of the principle of greater simplification and harmonisation of compliance powers as part of the wider, longer-term work.
“The government is committed to working closely with taxpayers and agents to ensure they are consulted as policy reforms are designed and delivered.”
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