Making Tax Digital: Transforming the tax system through the better use of information
Read the full outcome
Detail of outcome
In 2017, we will start to use PAYE information during the tax year to calculate whether the right tax is being paid. In the short-term, customers will still receive letters directing them to their digital tax account to check this, but in future, customers will be prompted digitally to check their tax account.
We have been working with third party information providers and individual customers on co-designing a process for resolving queries when a customer believes the information provided by a third party is incorrect. We will continue to use customer feedback and engage with stakeholders to ensure that this process is clear and easy to use.
We will adopt a gradual phased approach to using further sources of third party information and will seek to make better use of information we already hold.
Original consultation
Consultation description
Background
At Budget 2015, the Government set out the vision for a transformed tax system and in December 2015 launched the Making Tax Digital Roadmap, outlining more detail about what the transformed tax system will look like by 2020.
Because of the scales of these changes there is a lot we need to ask people about. We have published 6 consultation documents, each focusing on specific customer groups or elements of the Making Tax Digital reforms.
Focus of this consultation
This consultation focuses on how HM Revenue and Customs (HMRC) will make better use of the information we currently receive from third parties to provide a more transparent service for customers that reduces end of year under- and over-payments.
It also explores our future ambition for the use of third party information from 2018 onwards, which will enable us to deliver the end of the tax return by 2020.
This consultation will be of interest to:
- all individual and business customers
- agents who currently complete tax returns for their customers
- software developers
- employers
- all other organisations that provide customer information to HMRC
Documents
Updates to this page
Last updated 31 January 2017 + show all updates
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Summary of responses published.
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Page updated with new response method: a link to our online discussion forum where users can share their ideas on the consultation
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First published.