Making tax easier through smarter use of third party data – OTS Call for Evidence

The Office of Tax Simplification has published a call for evidence – 9 April 2021 – for its review of ways to make tax easier for people through smarter use of third party data, following publication of the scoping document for this review on 17 December 2020. The accompanying text states that:

“The review is considering alternative ways for HMRC to receive and use information that is already provided in some form either by individuals or third parties, rather than considering the provision of new types of information.

So for example, instead of millions of individuals having to provide to HMRC details of potentially taxable income and gains on their investments, the review will consider whether it could instead be uploaded by their investment or wealth management company and reflected in their online tax account or self-assessment return.

In addition, many people who are eligible to claim relief from higher rates of tax for charitable donations or pension contributions, do not currently do so. This review will consider whether this information could instead be reported to HMRC on the individual’s behalf by a third party and be prepopulated into their return or claimed through the online tax account, and the potential benefits and drawbacks of such an approach.”