Using third party data to make tax easier for people

Data reported to HMRC by third parties must be visible to taxpayers and their agents through the single customer account and used to update tax codes and support the completion of individuals’ tax returns recommends the Office of Tax Simplification (OTS) in its report on the use of third party data.

The OTS consulted a range of organisations including many who would be involved in providing such data and received strong support for the direction of travel presented in the report as long as enough time was allowed for the necessary systems and other changes to be made.

The report makes nine recommendations including that the government should:

• set out a clear roadmap of the stages through which changes would be consulted on and made;
• consult widely on the balance of responsibilities as between data providers software providers agents taxpayers and...