HMRC is set to collect more information from taxpayers in the coming years, saying this will help it to provide better outcomes for taxpayers and businesses, improve compliance and build a more resilient tax system.
The changes were outlined in draft Finance Bill measures published on 18 July 2023. It is proposed that from 2025/26, employers will be required to provide more detailed information on employee hours worked via real time information (RTI) PAYE reporting.
It says the information does not have to be relevant to the assessment, charge, collection and recovery of income tax in respect of PAYE income. However, it also says the information must be relevant for the purpose of the collection and management of income tax, corporation tax or capital gains tax.
For shareholders in owner-managed businesses, it is proposed that from the 2025/26 tax year they will be required to provide additional information via their self assessment return. The amount of dividend income received from their own companies will have to be reported separately to other dividend income, and the percentage share they hold in their own companies must be stated.
Failure to report this information incur a fixed penalty of £60.
Self-employed individuals will be required to provide information on the start and end dates of their businesses via their self assessment return. This change is expected to apply from tax year 2025/26 onwards and failure to report will trigger a fixed penalty of £60.
AIA’s Director of Operations, David Potts, commented Keeping up to date with evolving tax regulations and guidelines is key for AIA members supporting their clients. As a membership body for professional accountants, AIA represents SMPs and ensures their voices are heard in conversations with HMRC. We encourage members to get in touch if they have issues or concerns with regulatory burdens imposed so we can raise these issues on their behalf.
