The deadlines of 31st October ( paper returns) and 31st January (online submission) for the submission of Person Tax Returns polarise the dates on which tax is collected. Were they to be at variable dates as is the case with Corporation Tax and Vat Returns then revenue would be generated more evenly throughout a tax year as distinct from the high collection on 31st January and 31st July as at present. The system of estimated payment on account of tax based on past earnings could be scrapped with a reduction of admin burden ensuing. HMRC perform badly around the 31st of January as their systems and staff creak and breakdown. A high level of returns submitted against the present deadlines are inaccurate due to the difficulties of taxpayers getting adequate support where needed in completing their returns which in turn leads to more investigation work and cost.

Why is this idea important?

It takes away many regulations and puts an area of tax on a similar basis to other taxes leading to efficiencies in administration .The penalties and interest rules then applying to Vat and Corporation tax could be brought into line with one another.

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