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Simplification Update
16 January 2024
Type
Written Ministerial Statement
Department
Treasury
At a Glance
Issue Summary
The statement outlines further measures to simplify tax processes and reduce administrative burdens for individuals and businesses.
Action Requested
The government is designing a new online service for claiming tax relief on expenses, mandating payroll software for benefits in kind reporting by April 2026, legislating for National Insurance Credits for Parents and Carers from April 2026, and consulting on changes to CGT rules for alternative finance. Draft legislation will be published later this year.
Key Facts
- HMRC receives 1.1m claims annually for tax relief from employees.
- The new service aims to automatically process all expense claims in one place.
- Mandating payroll software simplifies the affairs of 3 million people and removes 4 million end-of-year returns.
- National Insurance Credits will add qualifying years for State Pension eligibility starting April 2026.
- A consultation on CGT rules for alternative finance is open until 9 April 2024.
- Draft legislation for transfer pricing, permanent establishment, and Diverted Profits Tax reforms will be published later in 2024.
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