HMRC published a consultation – which closed on 13 July – on how the tax administration framework could be reformed to support a trusted, modern tax administration system.
As part of the government’s 10-year tax administration strategy, Building a trusted, modern tax administration system, this call for evidence sought views on how the legislation underpinning HMRC’s administration of the tax system could be updated.
HMRC requested views on how the tax administration framework could be updated and simplified to provide a better experience for individuals and organisations, enable opportunities to further reduce the tax gap, and help build greater resilience and responsiveness to future crises.
Following consultation with its charity and Observer Members, CTG submitted a detailed response to the consultation.
The Call for Evidence provides a unique and important opportunity to examine the core principles underpinning the tax system and a chance to consider long-term and innovative reforms. It is important that this opportunity is not lost.
Our response starts with a number of observations on the position of charities within the tax system. This includes the need for improved guidance and practical and proportionate compliance requirements for charities. We then responded to questions particularly relevant for charities. In Annex I, we set out the key learnings from the Future of Gift Aid project and we follow that with Annex II that gives a further three practical case studies including Making Tax Digital for Corporation Tax, necessary reforms to Charity Tax Return Supplementary Form CT600(E) and changes to the rules relating to approved charitable loans and investments.