Namely, statistics from HMRC have shown that a record of 11.7m tax returns were filed on time in 2022, from 27.8m households in the UK.
I know its an oversimplification, but that's a tax return for one person in 42% of UK households.
I don't have the numbers, but say the UK population is at around 70m, and then adjust that number for under 18s, that could be something like 1 in 5 adults making a tax return.
It is understandable that HMRC are celebrating the meeting of the deadline, rather than the process itself, but when I read 'record number' as the opening sentence I feel like that's a bad thing rather than a good, in this instance.
The OTS was tasked with simplifying the administration of the tax system but has now been abolished.
Next year the annual exemption halves and the dividend tax free allowance is cut by 3/4, and the personal allowance will be frozen for several years. Things like state pensions continue to be paid without adjustment for tax. These measures, whilst understandable from the point of view of increasing tax take in the face of a growing budget deficit, will necessarily only collect tax from people making tax returns. Returns which need to be administered and processed.
The tax authority continue to be tasked with administration of things that have nothing to do with tax, like high income child benefit charge and student loan repayments.
All the while, HMRC staffing pressures and service levels continue to make the news...
Wouldn't it be nice to read about a record low number of tax returns being expected/filed, because there's been some simplification in the tax system to make administration more efficient and to keep the majority of the population outside the system?
The next step
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