The business rates system in the UK is set to undergo several significant changes following a consultation aimed at making taxation more efficient and transparent ...
This new obligation will allow for more frequent property valuation and a more accurate calculation of business rates. The applicable penalty regime has also been redesigned to provide businesses with sufficient opportunities to comply before financial penalties arise. If requirements arise under both the VOA and the digitizing business rates system, a ratepayer will not be penalized twice, even if they fail to comply with both requirements.
Ratepayers will also be required to submit an annual confirmation that they have provided all the necessary information. The confirmation must be submitted within 60 days after 30th April, which is the end of each assessable year. The Government will not introduce this annual confirmation process until it has been ensured that it will be straightforward for ratepayers to complete.
The project aims to match up the details of businesses held by HMRC and local billing authorities. This would potentially allow HMRC to target future business rates relief more effectively and for both authorities to more easily spot when tax or business rates avoidance is being carried out.
As a result of the consultation, HMRC has decided that additional information required from ratepayers to allow this matching will be captured as part of the VOA requirement. This new obligation will require ratepayers to provide tax or other reference numbers, with an accompanying sanctions regime for non-compliance. The Government, however, will design the sanctions regime in a manner that encourages and supports ratepayers to comply with their digital business rates obligations.
HMRC has also decided that the digitizing business rates project will not immediately include a portal through which businesses can view all their tax and business rates information in one place. It's coming though!
The business rates system in the UK is undergoing significant changes to make taxation more efficient and transparent. Ratepayers will be required to provide prompt notification to the VOA of any changes to occupier and property characteristics, and a new obligation will require ratepayers to provide tax or other reference numbers for digitizing business rates.
The annual confirmation process will be introduced once the Government has ensured that it is straightforward for ratepayers to complete. Overall, I expect these changes to streamline the taxation process and make it more effective for both businesses and the Government.
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