Tax Administration Framework Review - Earlier payments of income and corporation taxes
Earlier payment of income tax and corporation tax are being considered in a call for evidence published on Tax Day, 23 March 2021. HMRC would like taxpayers to pay their tax closer to the time their income is received, to help reduce the tax gap due to non-payment.
The link with MTD quarterly reporting is obvious though many will question whether quarterly reports can ever be accurate enough to be a basis for making payment. HMRC expects MTD to be well established before any decision is made on earlier payment, which will not be introduced in this parliament. Any changes would be controversial but research by the Office of Tax Simplification and HMRC highlights that earlier payment would suit some taxpayers. The economic impact of taking money out of the economy will need to be considered.
Join Caroline Miskin and Richard Jones as they consider the call for evidence and help develop ICAEW’s response.
Broadcast on 5 May 2021