‘Simpler vision’ for taxes unveiled - Money - News - Moneyfacts

News

‘Simpler vision’ for taxes unveiled

‘Simpler vision’ for taxes unveiled

Category: Money

Updated: 14/11/2011
First Published: 14/11/2011

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
A number of potential changes to the way personal taxes are handled have been unveiled by the Government.

It said the plans were part of a vision to make personal taxes 'more transparent, open and easier to understand'.

The Government said it wants to hear from taxpayers, representative bodies and tax professionals about its ideas.

Amongst them is giving everybody in the UK online access to their tax records, as is currently the case in the Republic of Ireland.

It has also suggested that self-assessment forms be sent to taxpayers with parts already filled in, with information being gleaned from existing information from employers and banks.

As well as the potential changes to the personal tax system, the Government is about to embark on a programme to change the way taxes are calculated.

It will see employers delivering information on pay, tax and national insurance to the HM Treasury & Customs each month, with the scheme being dubbed 'real time-information'.

It is hoped that by updating data each month a repeat of the last couple of years where millions of people have been either given tax rebates or being hit with tax bills will be avoided.

Currently, the Government has to wait until the end of each tax year to work out if people have paid the right level of tax.

"At the moment, for a lot of people, the tax line on their pay slip is the only time they see just how much they're paying in tax, but the Government doesn't think that's good enough," said David Gauke, Exchequer Secretary.

"We want to make tax more transparent and we want people to be more engaged with their own tax affairs.

"We plan to lift the lid on tax so that people understand how much they are paying, what their overall tax rate is, and what they should be paying, in the same way that the Government has lifted the lid on what they are paying for.

"Our vision is to transform the customer experience of the personal tax system."

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

77% of Christmas gifts unwanted

Research from Policy Expert has revealed that while Brits spend an average of £424 on presents for friends and family, more than three quarters (77%) of these gifts may be unwanted.

New Year tips to improve children’s money skills

How many have better budgeting as their New Year’s resolution? As with many things, these skills are best learned when young, so Lemonade Money has come up with some tips to help parents make their children more financially savvy.

Money worries lead to Christmas on credit

Money worries are putting Christmas at risk for up to five million Brits, with 10% saying they regularly worry about money in the lead up to Christmas, and the same proportion feeling stressed about how much they are spending.
 
Close