The UK's tax system is a complex and ever-changing landscape, with numerous laws, regulations, and policies in place. In recent years, there has been increasing scrutiny on the tax system, particularly on the tax gap ...
This electronic invoicing system is intended to promote its wider use across businesses and government departments. The government believes that e-invoicing will not only reduce errors in tax returns, but also improve the speed and accuracy of tax collection. This move towards a more digital tax system is in line with the government's overall strategy to modernise and streamline the tax system.
In addition, the government has appointed the Exchequer Secretary to the Treasury, James Murray MP, as the new chair of HMRC's board. The purpose of this board is to provide accountability on HMRC's performance, delivery, strategy, capability, and risk. This move is expected to bring fresh perspectives and ideas to the table, ensuring that HMRC is constantly striving towards improvement and efficiency.
Furthermore, the government has committed to publishing a digital transformation roadmap in spring 2025. This roadmap will outline HMRC's vision to be a digital-first organisation, to improve the user experience for taxpayers and make it easier for them to comply with their tax obligations.
This move towards a more digital tax system is expected to bring numerous benefits, including increased efficiency, reduced costs, and improved accuracy!
Another significant aspect of the government's plans is the recruitment of 5,000 more HMRC staff over five years. This is in line with the government's commitment to invest in HMRC and improve its capabilities.
In fact, some new staff are expected to join HMRC's training programme as early as November 2024, with offer letters already sent to 650 potential recruits. This increase in staff numbers is expected to improve HMRC's ability to tackle tax evasion and avoidance, as well as provide better support to taxpayers.
The government has also reiterated its commitment to deliver on its manifesto promises at the Budget on 30 October 2024. These promises include not increasing the rates of income tax, national insurance, or VAT, capping the main rate of corporation tax at 25% for this Parliament, abolishing the so-called 'non-dom' regime, charging VAT on private school fees, and reforming business rates. These measures are intended to create a fairer and more transparent tax system.
The Chancellor's plans to reform, modernise, and invest in the UK tax system are a step in the right direction towards closing the tax gap and improving the efficiency and effectiveness of HMRC. The introduction of e-invoicing, the appointment of a new chair for HMRC's board, the digital transformation roadmap, and the recruitment of more staff are all crucial elements in achieving this goal.
With these measures in place, the UK tax system is set to become more modern, efficient, and fair for all taxpayers.
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