New rules for PAYE, VAT, income tax, capital gains tax, the construction industry scheme, corporation tax, national insurance contributions & student loan repayments
A new compliance checking framework came into effect on 1 April 2009 for checking that businesses and individuals have paid the correct amount of tax and claimed the correct reliefs and allowances. It consists of:
The time limits for making tax assessments and claims have been aligned on 4 years but there are transitional arrangements so these do not become fully operative until 1 April 2010.
New rules for insurance premium tax; landfill tax; climate change levy; aggregates levy; stamp duty land tax; stamp duty reserve tax; inheritance tax; and petroleum revenue tax.
From 1 April 2010 the new compliance checking framework will apply to these taxes.
The time limits for making tax assessments and claims have been aligned on 4 years but there are transitional arrangements so these do not become fully operative until 1 April 2011.
Revised rules for excise compliance checks
From 1 April 2011 there are revisions to the compliance checking framework for excise duties to provide modernised powers.
The New Compliance Checks page has more information on the changes, including e-learning packages, Technical and Operational Guidance, Frequently asked Questions and fact sheets.
Together these changes created a new compliance checking framework for the main taxes and were announced on 12 March 2008 in Budget Note 97 (Opens new window).
The following Statutory Instruments bring into force the legislation in Finance Act 2008.
2009
No. 402 (Opens new window)
The Finance Act 2008, Schedule 37 (Appointed Day) Order 2009.
2009
No. 403 (Opens new window)
The Finance Act 2008, Schedule 39 (Appointed Day, Transitional Provision and Savings) Order 2009.
2009
No. 404 (Opens new window)
The Finance Act 2008, Schedule 36 (Appointed Day and Savings) Order 2009.
2009
No. 405 (Opens new window)
The Finance Act 2008, Section 119 (Appointed Day) Order 2009.
2009
No. 470 (Opens new window)
The Education (Student Loans) (Repayment) Regulations 2009
2009
No. 586 (Opens new window)
The Value Added Tax (Amendment) Regulations 2009.
2009
No. 588 (Opens new window)
The Income Tax (Pay As You Earn) (Amendment) Regulations 2009.
2009
No. 600 (Opens new window)
The Social Security (Contributions) (Amendment No. 3) Regulations 2009.
Together these changes extend the new compliance checking framework to other HMRC taxes and were announced on 22 April 2009 in Budget Note 89 (Opens new window).
The following Statutory Instruments bring into force the legislation in Finance Act 2009.
2009
No. 2035 (Opens new window)
The Finance Act 2009, Schedule 47 (Consequential Amendments) Order 2009
2009
No. 3054 (Opens new window)
The Finance Act 2009, Section 96 and Schedule 48 (Appointed Day, Savings and Consequential Amendments) Order 2009
2010
No. 642 (PDF 39K) (Opens new window)
The Aggregates Levy (General) (Amendment) Regulations 2010
2010
No. 643 (PDF 40K) (Opens new window)
The Climate Change Levy (General) (Amendment) Regulations 2010
2010
No. 664 (PDF 49K) (Opens new window)
The Stamp Duty Reserve Tax (Amendment) Regulations 2010
2010
No. 815 (PDF 35K) (Opens new window)
The Finance Act 2009, Schedule 50 (Record-keeping) (Appointed Day) Order 2010
2010
No. 867 (PDF 66K) (Opens new window)
The Finance Act 2009, Schedule 51 (Time Limits for Assessments, Claims, etc.) (Appointed Days and Transitional Provisions) Order 2010
Initial consultation on A new approach to compliance checks was published on 17 May 2007.
Responses to the initial consultation together with more detailed proposals and draft legislation were published on 10 January 2008: A new approach to compliance checks: Responses to consultation and proposals.
A summary of responses to that consultation and a Final Impact Assessment were published on 27 March 2008.
The consultation document Compliance Checks: The Next Stage was published on 24 November 2008 with draft legislation and explored applying the new compliance checking framework to other HMRC taxes. It also sought views on the first tranche of possible repeals of a number of specialist information and inspection powers. This would make sure that the safeguards in the new compliance checking framework apply in these cases.
A summary of responses to that consultation and a Final Impact Assessment April were published on 22 April 2009.
