HMRC poses questions on online tax services

HMRC poses questions on online tax services

Consultation considers online accounts and pre-filled returns and statements

HM Revenue and Customs (HMRC) has launched a consultation on the online elements of its modernisation of the personal tax system.

The consultation document was published at the beginning of this week and is part of the effort to create a simpler and more transparent personal tax and welfare system. It is connected to the development of a Real Time Information system by HMRC and universal credits by the Department for Work and Pensions.

It invites responses on proposals for three main initiatives:

€Â¢ Online accounts for individual PAYE taxpayers, with the questions of whether it would improve a person's understanding of their tax position and how often it would be used.

€Â¢ Pre-filled tax returns for self-assessment, asking about benefits and risks and the most important areas to pre-fill.

€Â¢ Pre-filled tax statements for those who do not file self-assessments. HMRC asks whether these would be useful and what information should be included.

Exchequer secretary David Gauke said: "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."

The consultation will remain open until 24 February 2012.