Testing, testing – HMRC ponders a new piloting approach

• HMRC has proposed a new way of piloting changes to the tax system through a legislative sandbox.
• This would involve suspending the usual tax rules for short periods for small groups of taxpayers to test and refine new rules before they are rolled out to the rest of the population.
• While HMRC expects most pilots would be done with volunteers, they would want any new rules to permit compulsory selection to ensure they have a representative sample of taxpayers for some studies.
• However, there are potential pitfalls for taxpayers and agents, including the need to familiarise themselves with new obligations and potential costs.
• The Association of Taxation Technicians has called for participation in a pilot to be voluntary and for an independent oversight board to review any proposed pilots.
• They also suggest that HMRC should test whether systems actually do what they need to do and if they match the underlying legislation.

Source Accountingweb

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