In its response to the general consultation on draft clauses for the next Finance Bill, the ATT has highlighted a significant gap between the policy intention and the wording of the legislation. The draft Finance Bill legislation gives HMRC extended powers to require addition information from employers and taxpayers both through RTI and via the self-assessment tax return. The policy intention here is to require the reporting of specific additional information to HMRC (see below), but the legislation has been drafted in wider terms – effectively delegating to HMRC the power to set out the precise detail in regulations.
The ATT summarises its concerns succinctly as follows:
The detail of any additional information required to be included in returns should have been contained within the primary Finance Bill legislation and not relegated to regulations.
Without knowing exactly what additional information is required (the legislation does not specify anything in particular, other than limiting it to information ‘relevant for the purpose of the collection and management’ of tax), it is impossible to comment on how workable the plans are.
This enabling legislation provides unlimited scope for extra data and information in relation to direct taxes to be requested at a future date via regulations.
Although not set out explicitly in the draft legislation, the intention was to require the reporting of the following additional information in tax returns and via RTI from 2025/26:
Employers to provide more detailed information on hours worked by their employees (via RTI).
Shareholders in OMBs to report (a) dividend income from their own companies separately to other dividend income, and (b) the percentage share they hold in their own companies (in the self-assessment tax return).
Self-employed taxpayers to report the start and end dates of their self-employment (via the tax return).
In its response to the general consultation on draft clauses for the next Finance Bill, the ATT has highlighted a significant gap between the policy intention and the wording of the legislation. The draft Finance Bill legislation gives HMRC extended powers to require addition information from employers and taxpayers both through RTI and via the self-assessment tax return. The policy intention here is to require the reporting of specific additional information to HMRC (see below), but the legislation has been drafted in wider terms – effectively delegating to HMRC the power to set out the precise detail in regulations.
The ATT summarises its concerns succinctly as follows:
The detail of any additional information required to be included in returns should have been contained within the primary Finance Bill legislation and not relegated to regulations.
Without knowing exactly what additional information is required (the legislation does not specify anything in particular, other than limiting it to information ‘relevant for the purpose of the collection and management’ of tax), it is impossible to comment on how workable the plans are.
This enabling legislation provides unlimited scope for extra data and information in relation to direct taxes to be requested at a future date via regulations.
Although not set out explicitly in the draft legislation, the intention was to require the reporting of the following additional information in tax returns and via RTI from 2025/26:
Employers to provide more detailed information on hours worked by their employees (via RTI).
Shareholders in OMBs to report (a) dividend income from their own companies separately to other dividend income, and (b) the percentage share they hold in their own companies (in the self-assessment tax return).
Self-employed taxpayers to report the start and end dates of their self-employment (via the tax return).
