Source · Select Committees · Public Accounts Committee
Recommendation 12
12
Accepted
We asked the Departments whether they now knew what data they were missing and what...
Recommendation
We asked the Departments whether they now knew what data they were missing and what they needed to collect to allow them to be better prepared in future. HMRC told us that since the schemes had closed it had run a public consultation on whether to collect additional data from taxpayers that are not essential to administer tax but might be useful in the future for the Departments to provide and target support. The consultation asked whether data on dividends should identify how much had been earned from a director’s own company and how much from other sources. It also asked whether employers should provide data on where in the country their employees work and whether businesses should provide data on the sector of the economy they work in. HMRC said the advantages of the additional data would need to be weighed against the burdens placed on those who would supply the data. The consultation is now closed and HMRC said it was for Ministers to decide on changes.18
Government Response Summary
The government consulted on options for improving the range of data HMRC collects and following consideration of the views of respondents to the consultation, the government will prioritise three options to be taken forward in a future Finance Bill with the intention to collect this data from April 2024.
Government Response
Accepted
HM Government
Accepted
2: PAC conclusion: Gaps and lags in HMRC’s data contributed to the schemes providing excessive support to some, while others in need were ineligible. 2: PAC recommendation: The Departments should set out, by July 2023, their priorities for obtaining data which would enable the better targeting of economic support. In doing so, they should consider how they can keep burdens on customers proportionate. 2.1 The government agrees with the Committee’s recommendation. Recommendation implemented 2.2 From July to October 2022, the government consulted on options for improving the range of data HMRC collects, uses and responsibly shares across government, to provide an accurate and up to date picture of citizens and businesses. Some options were focused on specific customer groups, such as the self-employed, whilst others proposed collecting a particular piece of information across different customer groups (e.g., occupation). 2.3 Following careful consideration of the views of respondents to the consultation, the government published a response on 27 April 2023. This set out a measured and proportionate approach to prioritising the collection of data that customers already hold, 17 including specific options that will be taken forward in a future Finance Bill with the intention to collect this data from April 2024. 2.4 The government will prioritise three options: collection of data on employee hours worked via Real Time Information PAYE reporting, dividends received from owner-managed businesses via the Self-Assessment return and start and end dates of self-employment, as set out in the consultation. The government also previously set out plans for the introduction of Making Tax Digital for Income Tax, which will provide a more up-to-date data picture of the income and expenditure levels of self-employed customers with a qualifying income of more than £50,000 per annum from 2026 and £30,000 from 2027, through quarterly updates. 2.5 The government will continue to review the data it collects to ensure future policy measures requiring economic support are effectively targeted whilst also balancing the cost of collection.