UK and International Tax news

Tax Policies And Consultations Spring 2021

Wednesday 24th March 2021

The Government has published Tax Policies and Consultations (Spring 2021) setting out a number of measures designed to enhance the stability and effectiveness of the UK tax system by outlining a future pathway for its tax administration and tax policy development.

According to the Government, these measures will shape the next steps in delivering its ten-year tax administration strategy and take forward policy development across a range of important tax issues, including business rates and environmental taxes, and a range of simplification measures. Consultations have been launched in the following areas:

Modernising tax administration

In July 2020, the government announced its ten-year tax administration strategy, through the publication of Building a trusted, modern tax administration system. The strategy sets out how HMRC will make sure tax administration keeps up with the rapid changes taking place in society, the economy and technology to deliver the flexible, resilient and responsive tax system the UK will need in the years ahead.

Consultations have been launched on the tax administration framework, timely payment, raising standards in the tax advice market, exploring voluntary sign up to MTD for VAT, and exploring the costs and benefits of MTD for VAT experienced by smaller businesses.

Tackling non-compliance

The government is committed to clamping down on deliberate non-compliance, as well as supporting taxpayers to get their tax right first time, in order to tackle the tax gap which is estimated at 4.7%. As well as making further progress with the tax administration strategy, the following consultations will lay the foundations for future measures to drive down non-compliance in different forms, including:

Clamping down on promoters of tax avoidance including draft guidance, tackling disguised remuneration tax avoidance, helping taxpayers get offshore tax right, preventing and collecting international tax debt, and the effects of off payroll working reforms on employment agencies.

Further tax policy announcements

The Government considers that the tax system needs to reflect wider economic, social and policy change in order to ensure it remains effective. Further consultations focus on areas where the Government is considering reform, set out next steps on work under way, and report back on recent work that has explored potential changes.

HM Treasury has launched consultations on aviation tax reform, the taxation of trusts, carbon emissions tax, simplification of partial exemption and the Capital Goods Scheme, transfer pricing documentation, reform of the taxation of securitisation companies, and notification of uncertain tax treatment by large businesses.

HMT is also to carry out reviews of business rates and the Office of Tax Simplification.

Responses to the various consultations, discussion documents and calls for evidence have been requested on/before 13 July 2021.


If you would like further information on any of the above please contact Keith Rushen on 0044 2074862379.

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