ATT responds to HMRC consultation on assessment powers penalties and safeguards

The ATT has responded to the HMRC discussion document ‘The Administration Framework Review: Assessment powers, penalties and safeguards’ (‘the Consultation’) which was issued on 15 February 2024.

The Consultation was looking at how HMRC’s assessment powers, penalties and taxpayer safeguards could be reformed as part of the Government commitment to establish a trusted and modern tax administration system.

In the ATT's response, we supported reforms to align powers, penalties and safeguards across taxes where detailed examination of the tax supported alignment. We believe that this has the potential to create both simplicity and certainty for taxpayers, as well as having potential cost benefits for taxpayers, agents and HMRC.

Reforms were considered for the Alternative Dispute Resolution (ADR) and Statutory Review processes, and whilst we support ADR being made available in more circumstances, we did not support the mandatory use of Statutory Review or denying certain taxpayers access to the Statutory Review process.

We also wondered if, once the review of the administrative framework had taken place, if it was now time to retire the Taxes Management Act 1970 and consolidate all administrative legislation across all taxes into one ‘fit for purpose’ management taxes act which would simplify and consolidate the tax code, as well as help taxpayers find the information, they need in one easy and accessible place.