ATT Budget Representation - Income Tax and Self-Assessment Simplification

The ATT has submitted a Budget Representation suggesting four measures to simplify Income Tax and Self-Assessment. 

Our recommendations are as follows:

1. Provide an enduring ‘opt-in’ to Self-Assessment 
   To simplify the position for taxpayers who would prefer to file tax returns despite not being obliged to under HMRC’s criteria.

    

2. Simplify tax compliance for those who do not need to be in Self-Assessment 
   Individuals with tax to pay, but who do not meet the requirements to file Self-Assessment returns, could be helped to meet their tax compliance obligations by:
   •    Improving clarity over Simple Assessment responsibilities
   •    Allowing access to bank interest records held by HMRC
   •    Enabling operation of PAYE on State Pension payments.  

    

3. Simplify jointly-owned property rules 
   Removing the current differentiation in income tax treatment of assets jointly owned by co-habiting spouses/civil partners compared with other joint owners would simplify the position, and result in consistent treatment of jointly-owned property across income tax and capital gains tax.

    

4. Relax the rules on carrying back Gift Aid donations 
   Allowing carry back of Gift Aid donations to the previous tax year via amendments to that year’s tax return would remove an unnecessary complication, increase flexibility, and tackle a potential obstacle to charitable giving.

   Further details of each recommendation can be found in our full Budget Representation.