Concerns over HMRC ideas to test new policies on small groups of taxpayers

Proposals to allow HMRC to test new policies or processes with small groups of taxpayers before rolling out changes to the wider public will not address the real problems around the implementation of new digital services, the Association of Taxation Technicians (ATT) has warned.

The Government has today published a discussion document¹ on the possibility of suspending the usual tax rules for selected group of taxpayers for a limited time, which would allow it to explore the effects of changes in policies or processes before rolling them out to the wider taxpayer population.

The ATT has cautioned that, in recent years, taxpayers have experienced a number of issues with HMRCs online services² needed to manage their tax affairs, following the introduction of new requirements or new processes.

Senga Prior, Chair of the ATT Technical Steering Group said:

“Rather than seeking to exempt taxpayers from existing rules to test new systems we think HMRC should turn this idea on its head and look to provide more exclusions and protections for those not able to use new systems or processes after they have launched.

“A number of HMRC’s recent online services were not open from launch to all who needed to use them, causing those who were excluded a great deal of stress and anxiety as they sought to comply with their tax compliance obligations.

“We are also concerned about the additional time and costs for taxpayers and their agents which will arise from being asked to partake in any pilot. There is always a cost to taxpayers in learning how to manage a new process or obligation. HMRC previously underestimated the transition and familiarisation processes for the introduction of MTD for VAT, so asking or obliging taxpayers to take part in pilots which are unlikely to result in any personal benefit to them will not prove popular.”