On 30 November 2021 the UK government published a summary of responses to the call for evidence entitled The Tax Administration Framework: Building a 21st Century Tax System.

The call for evidence had been issued in March 2021. The government has already published a ten-year tax administration strategy called Building a trusted, modern tax administration system. The latest call for evidence was looking for comments on how the underlying tax administration could be adapted for future developments.

Respondents were in favour of simplifying the tax administration framework and reducing the administrative burdens for individuals and businesses; and considered that greater certainty and clarity were important to build trust. Taxpayers wanted to easily determine their tax liability and to understand why HMRC may request specific information, as this could reduce the number of unnecessary interactions with HMRC.

Some respondents wanted HMRC to ensure there is more clarity about the claims and reliefs to which a taxpayer may be entitled and that more support could be available to taxpayers who cannot afford professional advice.

Taxpayers favoured digital reform to build a modern, digital tax system that is adaptable and responsive. This could involve collecting more real-time information, increasing the use of pre-population of tax returns and the development of the Single Customer Record and Account. There would however need to be support for people who struggle with digital technology.

The UK Government is moving forward with work in several areas affecting the tax administration framework including the creation of a single digital account for all taxpayers, and consideration is being given to how the revised tax administration framework should support its development. The government is also proceeding with further work on the use of third-party data and pre-population of tax returns, including consideration of safeguards and obligations for taxpayers, agents, third party data providers and HMRC.

Also, the government confirmed in the Budget announcements in October 2021 that it intends to proceed with the reform of basis periods for assessment of income tax. Further technical consultation is planned, taking into account feedback received from stakeholders.

Together with the summary of responses on the tax administration framework, the government also published a call for evidence on income tax self-assessment registration for the self-employed and landlords. There are also plans for a consultation on how HMRC can make better use of data to build up an improved understanding of taxpayers. This would involve using new sources of data; and improving the accuracy of data already held.

There are also plans to improve tax administration for large businesses. The government intends to improve tax administration for large businesses by issuing new guidelines for compliance; improving the management of long-running enquiries; and upgrading the cooperative compliance process.