HM REVENUE AND
CUSTOMS News Release (Ref:NAT29/08) issued by The Government News
Network on 19 June 2008
HM Revenue &
Customs (HMRC) has launched a consultation on its proposals for a
new taxpayers' charter, alongside two further consultation
documents on modernising tax administration.
The charter consultation sets out ideas for the scope and shape
of a taxpayers' charter, which will articulate, in plain
language, the rights and obligations of customers when dealing
with HMRC. Responses received will help form the basis of a draft
charter, which will be the subject of further consultation later
this year.
The second consultation explores why taxpayers fail to file their
tax returns, or pay the tax they owe, on time, and how HMRC can
help them to meet their obligations. It also discusses an aligned
approach to penalties across the different taxes - to encourage
timely filing and payment - alongside the appropriate taxpayer safeguards.
The third consultation considers the case for harmonising and
simplifying the rules on interest charged by HMRC both on tax paid
late and on\interest paid by HMRC on overpayments. It considers
the principles that might underpin a modern interest regime that
is clear, simple and easy for taxpayers and their advisors to understand.
The three consultation documents, and impact assessments for the
tax administration consultations, are available on the HMRC
website at: http://www.hmrc.gov.uk/consultations/index.htm
(click the "current consultations" option).
Financial Secretary to the Treasury, Jane Kennedy, said:
"The Government is committed to ensuring greater consistency
across the tax system and making HMRC more efficient and effective.
"This powers consultation document and the interest
harmonisation document represent the next stage in the
modernisation of the framework of law and practice for both HMRC
powers and taxpayers safeguards.
"It is also important that the tax system is usable and
accessible. The new charter will provide a reference point for
taxpayers, setting out both the standards they can expect from
HMRC and the obligations they have when dealing with the department."
HMRC's Acting Chairman Dave Hartnett said:
"The new charter will benefit all taxpayers by putting the
relationship between taxpayers and HMRC on a clearer footing. This
will undoubtedly have long-term cost and time benefits for both
taxpayers and HMRC.
"It is also important that HMRC develops a modernised,
simplified approach to late filing and payment, as well as
interest charged and paid. HMRC's current powers in these
areas - inherited from its predecessor departments - add
unnecessary complexity and burdens to the tax system for
taxpayers, their advisors and HMRC, and the proposals seek to
address this."
The deadline for submitting comments on all three consultations
is 11 September 2008.
Notes for editors
1. The Chancellor announced in the 2008 Budget that HMRC will
begin the process of working with interested parties in the
development of a taxpayers' charter. HMRC has been engaging
with representative bodies and internal staff since that announcement.
2. The two consultations on modernising tax administration
represent the next stage of a programme of consultation and
legislative change to provide a modern and effective framework of
law and practice for HMRC.
3. As part of the review of Powers, Deterrents and Safeguards,
HMRC has been developing ideas and consulting on how to modernise
and align its civil financial penalties. The first substantial
measure, legislated in Finance Act 2007, was a single new penalty
regime for incorrect returns for income tax, corporation tax, Pay
As You Earn (PAYE), national insurance contributions (NICs) and
value added tax (VAT) (the main taxes). Provisions included in
Finance Bill 2008 would extend this approach to penalties for
incorrect returns for other taxes and penalties for failing to
notify new taxable activities. Therefore, the consultation on
filing returns and paying tax on time, published today, represents
the third stage of the review of HMRC penalties.
4. Full titles of the consultation documents and how to comment:
HM Revenue and Customs and the Taxpayer: A new Charter for HMRC
and its customers
Responses to this consultation document can be made by e-mail to:
taxpayers.charter@hmrc.gsi.gov.uk or by post to: HMRC, Room 3E/02,
100 Parliament Street, London SW1A 2BQ or by fax to 020 7147 0391.
Modernising Powers, Deterrents and Safeguards: Meeting the
obligations to file returns and pay tax on time
Responses to this consultation document can be made by e-mail to:
powers.review-of-hmrc@hmrc.gsi.gov.uk or by post to: HMRC Powers
Review, Room 1/72, 1st Floor, 100 Parliament Street, London SW1A
2BQ or by fax to 020 7147 2375.
Interest - Working Towards a Harmonised Regime
Responses to this consultation document can be made by e-mail to:
katie.lunt@hmrc.gsi.gov.uk or by post to: Katie Lunt, HMRC, Tax
Administration Advice team, 4SW, Queens Dock, Liverpool, L74 4AA
or by fax to 0151 703 8452 (please mark these for the attention of
'Katie Lunt').
Issued by HM Revenue & Customs Press Office
Website http://www.hmrc.gov.uk