HMRC and the Treasury launched the following new consultations on Legislation Day:
Improving the data HMRC collects from its customers – setting out potential options for improving the range of data HMRC collects and shares across government. Closing on 12 October 2022, the consultation identifies six areas where HMRC’s data could be improved:
Clarifying the business sector of the self-employed (potentially this might be added as a compulsory field on tax returns).
Identifying the occupations of employees and the self-employed (via RTI for employees and tax returns for the self-employed).
Clarifying the location of an employment or a business (to help HMRC understand where the economic activity takes place and how businesses with multiple locations operate).
Recording the hours employees work (to improve HMRC’s understanding of labour market trends and inform potential government interventions).
Identifying dividends paid to shareholders in owner-managed businesses (this gap in data presented a particular challenge for the design of the Covid support schemes, for example).
Mandating the disclosure of start and end dates of self-employment.
Digitalising Business Rates: connecting business rates and tax data – covering policy and ‘IT design’ options to digitalise the business rates system. Closing on 30 September 2022, the consultation focuses on linking up business rates information with tax records (reconciling data from HMRC and other government departments) and bringing business rates information together in one place for businesses alongside other tax information.
Responses to the following consultations were published on 20 July 2022:
OECD Pillar 2: Consultation on Implementation – this picks up responses to the Treasury’s consultation on proposed implementation of Pillar 2 in the UK. The UK implementing legislation was published in draft on ‘Legislation Day’, and the government welcomes further representations until 14 September 2022 (when the general consultation on draft Finance Bill 2023 legislation closes).
Reporting rules for digital platforms – covering implementation in the UK of the OECD Model Reporting Rules for Digital Platforms, which require digital platforms to report details of the income of sellers on their platform to the tax authority and to sellers. Draft implementing regulations are to be published for further consultation.
Response to accounting changes for insurance contracts – covering proposed tax changes in response to IFRS 17 ‘Insurance Contracts’. The response notes the government’s intention to repeal FA 2012 s 79 with effect from 1 January 2023. HMRC will continue to engage with the insurance industry via its IFRS 17 working group, ‘particularly on the complexities around the interaction of the IFRS 17 tax transitional rules with the existing transfer of business rules in section 129 FA 2012’. Draft regulations are expected in Autumn 2022.
HMRC and the Treasury launched the following new consultations on Legislation Day:
Improving the data HMRC collects from its customers – setting out potential options for improving the range of data HMRC collects and shares across government. Closing on 12 October 2022, the consultation identifies six areas where HMRC’s data could be improved:
Clarifying the business sector of the self-employed (potentially this might be added as a compulsory field on tax returns).
Identifying the occupations of employees and the self-employed (via RTI for employees and tax returns for the self-employed).
Clarifying the location of an employment or a business (to help HMRC understand where the economic activity takes place and how businesses with multiple locations operate).
Recording the hours employees work (to improve HMRC’s understanding of labour market trends and inform potential government interventions).
Identifying dividends paid to shareholders in owner-managed businesses (this gap in data presented a particular challenge for the design of the Covid support schemes, for example).
Mandating the disclosure of start and end dates of self-employment.
Digitalising Business Rates: connecting business rates and tax data – covering policy and ‘IT design’ options to digitalise the business rates system. Closing on 30 September 2022, the consultation focuses on linking up business rates information with tax records (reconciling data from HMRC and other government departments) and bringing business rates information together in one place for businesses alongside other tax information.
Responses to the following consultations were published on 20 July 2022:
OECD Pillar 2: Consultation on Implementation – this picks up responses to the Treasury’s consultation on proposed implementation of Pillar 2 in the UK. The UK implementing legislation was published in draft on ‘Legislation Day’, and the government welcomes further representations until 14 September 2022 (when the general consultation on draft Finance Bill 2023 legislation closes).
Reporting rules for digital platforms – covering implementation in the UK of the OECD Model Reporting Rules for Digital Platforms, which require digital platforms to report details of the income of sellers on their platform to the tax authority and to sellers. Draft implementing regulations are to be published for further consultation.
Response to accounting changes for insurance contracts – covering proposed tax changes in response to IFRS 17 ‘Insurance Contracts’. The response notes the government’s intention to repeal FA 2012 s 79 with effect from 1 January 2023. HMRC will continue to engage with the insurance industry via its IFRS 17 working group, ‘particularly on the complexities around the interaction of the IFRS 17 tax transitional rules with the existing transfer of business rules in section 129 FA 2012’. Draft regulations are expected in Autumn 2022.
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