The OTS has published a paper providing an update on how the government, HMT and HMRC have responded to its November 2017 VAT: routes to simplification report.
That report contained eight main and fifteen additional recommendations, the most significant of which was for the government to examine the level and design of the registration threshold. The chancellor’s initial response covered the eight main recommendations and promised that the government would continue to engage with the issues raised.
Changes the government has embarked upon to date include:
partial exemption and the capital goods scheme: HMRC launched a consultation in July 2019 on the OTS’s recommendations to increase the de minimis limits and simplify the calculations and categories;
penalties for inaccuracies: HMRC is looking at ways to streamline operational processes to reduce administrative costs in relation to inaccuracy penalties and the suspended penalty regime;
process improvements: HMRC has increased the range of circumstances in which alternative dispute resolution may be offered and ensured that all importers will receive digital C79 import certificates through the customs declaration service; and
improving VAT guidance: HMRC is undertaking a review of its published notices and manuals, starting with VAT.
Ongoing work includes:
registration threshold: the government consulted in 2018 and intends to look again at the possibility of introducing a smoothing mechanism once the terms of EU exit are known;
public sector VAT: government announced at Spring Statement 2019 that it would publish a policy paper on VAT simplification and the public sector;
reduced rates: the EU has moved towards flexibility and the government will wait until the terms of EU exit are clear before considering any changes;
tour operators margin scheme: HMRC regards OTS recommendation for increasing the de minimis limit and removing certain businesses as another issue for consideration post-Brexit;
options to tax: while the OTS recommendation for online record keeping could potentially be implemented through making tax digital and the enterprise tax management platform, HMRC cannot yet say whether this is likely to be taken forward, given its other commitments.
This OTS evaluation is the first of what is intended to be an occasional series of ‘evaluation updates’ to inform stakeholders and the public of the OTS’s work. See bit.ly/2nyxI5q.
The OTS has published a paper providing an update on how the government, HMT and HMRC have responded to its November 2017 VAT: routes to simplification report.
That report contained eight main and fifteen additional recommendations, the most significant of which was for the government to examine the level and design of the registration threshold. The chancellor’s initial response covered the eight main recommendations and promised that the government would continue to engage with the issues raised.
Changes the government has embarked upon to date include:
partial exemption and the capital goods scheme: HMRC launched a consultation in July 2019 on the OTS’s recommendations to increase the de minimis limits and simplify the calculations and categories;
penalties for inaccuracies: HMRC is looking at ways to streamline operational processes to reduce administrative costs in relation to inaccuracy penalties and the suspended penalty regime;
process improvements: HMRC has increased the range of circumstances in which alternative dispute resolution may be offered and ensured that all importers will receive digital C79 import certificates through the customs declaration service; and
improving VAT guidance: HMRC is undertaking a review of its published notices and manuals, starting with VAT.
Ongoing work includes:
registration threshold: the government consulted in 2018 and intends to look again at the possibility of introducing a smoothing mechanism once the terms of EU exit are known;
public sector VAT: government announced at Spring Statement 2019 that it would publish a policy paper on VAT simplification and the public sector;
reduced rates: the EU has moved towards flexibility and the government will wait until the terms of EU exit are clear before considering any changes;
tour operators margin scheme: HMRC regards OTS recommendation for increasing the de minimis limit and removing certain businesses as another issue for consideration post-Brexit;
options to tax: while the OTS recommendation for online record keeping could potentially be implemented through making tax digital and the enterprise tax management platform, HMRC cannot yet say whether this is likely to be taken forward, given its other commitments.
This OTS evaluation is the first of what is intended to be an occasional series of ‘evaluation updates’ to inform stakeholders and the public of the OTS’s work. See bit.ly/2nyxI5q.
