HMRC should introduce secure, two-way digital communication with taxpayers and agents and allow taxpayers to remain in Self-Assessment by choice.
These are just two of the ‘top 10’ asks for the tax system from the Association of Taxation Technicians (ATT).
Rather than calling for new taxes or relief, the ATT wants a focus on fixing processes that are no longer working as intended, which are increasingly creating confusion, delay, and unnecessary contact with HMRC!
Among the key recommendations are calls to:
- Allow taxpayers to remain in Self-Assessment by choice, even where they no longer meet formal filing thresholds, and introduce a simple route for taxpayers – or their agents – to re-enter Self-Assessment where it remains the most effective way to manage their affairs.
- Overhaul Simple Assessment, which now affects more than 1.3 million taxpayers a year and generates around 500,000 calls to HMRC annually, despite being designed to reduce administrative burdens.
- Introduce secure, two-way digital communication with HMRC for taxpayers and agents, alongside a case-tracking system so users can see when correspondence, claims and returns have been received and are being processed.
- Simplify the taxation of the state pension, including providing pensioners with a clear year-end summary of their taxable pension, to reduce confusion and errors.
- Improve the agent experience, including giving agents access to the same information and online services as their clients and allowing multiple agents to be authorised for VAT, PAYE and corporation tax where appropriate.
The Association is also calling for a review of outdated allowances eroded by inflation, a reassessment of the marriage allowance, dedicated support from HMRC during the rollout of Making Tax Digital (MTD), and simplification of inheritance tax by merging the nil rate band and residence nil rate band.
Jon Stride, Chair of the ATT’s Technical Steering Group, said: “These are not radical or controversial proposals – they are targeted, practical changes that would help taxpayers get their tax right first time, reduce avoidable contact with HMRC and make the system work more efficiently for everyone involved.
“In many cases, the issues we are highlighting arise because systems have evolved in isolation. Addressing them would improve transparency, reduce error and ease pressure on HMRC and the profession alike.”
