Increasing tax complexity

HMRC chief in tax arrangements warning HMRC chief executive Jim Harra has warned MPs that the tax authority does not know exactly how many people are set to face more complex tax arrangements. With it estimated that there will be 1.2m more taxpayers this year compared to 2022/23 following the Chancellor's freezing of tax allowances and thresholds, Mr Herra noted there would be no extra funding for HMRC to cope with an increased workload. MP Harriett Baldwin, chair of the Treasury Select Committee, said fiscal drag posed a "nightmare" scenario for HMRC. Laura Suter, personal finance analyst at AJ Bell, said that the Government’s “stealth tax raid” will strain HMRC’s overburdened phone lines, while Frank Haskew, head of taxation strategy at the ICAEW, said that the tax authority’s predicament was “very concerning.” A spokesman for HMRC commented: “We’ll meet the increasing demand by helping and encouraging more people to use our online services, which can answer queries quickly and easily without having to wait on the phone or write to us.”

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