Policy & Compliance
Self Assessment: the evolution The following article is reproduced at the request of HMRC. It looks at how the development of Self Assessment brought advantages for users and how to go about the process today
F or many self-employed declare their tax liabilities. But Self Assessment has only been in place since 1996 and was created to streamline the tax collection process for those with any untaxed income who need to declare and pay tax on it. Back then, the online service we know today did not exist, so how did we get from zero to 97% of Self Assessment filers submitting their tax returns online? HMRC faces the same challenge every year – how do we get millions of people to file their tax returns and pay any tax owed by 31 January. workers, Self Assessment has always been the way they Simply, we created an online system for the digitally capable that allows people to self-serve to meet their tax obligations. The Self Assessment population is rising with more than 12 million people expected to file a return each year. About 5 to 6 million of those customers leave it until January to file their returns and this can cause delays both for HMRC and our customers. Going online The online service was launched in 2000 and, not daunted by the prospect of the ‘millennium bug’, 38,000 people submitted their Self Assessment tax return online. Those digital revolutionaries helped set the precedent that now sees more than 11 million people submitting their tax returns online. Encouragingly, almost 68,000 people filed their 2023-24 tax return online on 6 April 2024, the first day of the new tax year. The online service has evolved since 2000 and any new services or enhancements of existing services are made with the customer in mind, after systematic customer research. We want them to navigate the service with ease, get their tax right first time and support them
when they are stuck. Some of the customer-focused changes to filing a Self Assessment tax return on GOV.UK include: • Using pre-populated forms to save customers time inputting their details; • Allowing customers to tailor their tax return, so they only need to complete relevant parts; • In-built help functions with access to videos or guidance to support customers every step of the way. Self Assessment is a digital process on GOV.UK. You can set up your Government Gateway account, register for Self Assessment, complete and submit the Self Assessment forms at www.gov.uk/log-in-register-hmrc- online-services, and set up a payment plan to pay any tax owed at www.gov.uk/pay-self- assessment-tax-bill. HMRC offers a wide range of resources to help customers with their Self Assessment on GOV.UK and YouTube. We know customers are using these resources because there were 48 million page views on GOV.UK and 1.4 million YouTube
views during the most recent Self Assessment peak. • The most popular GOV.UK page was the Self Assessment checker tool (www.gov.uk/check-if-you- need-tax-return), which will help determine each year if you need to complete a tax return. • YouTube videos include how to register and how to stop Self Assessment. Continuous improvement We recognise that some customers may need extra support so there is a specialist dedicated service to help them. We continue to improve our services and are moving towards a better and more modern tax system. We will bring our customers with us on this journey, learning from their feedback, making improvements and innovating along the way, just like we always have done. As the Self Assessment population evolves, HMRC will continuously adapt to make sure we can support customers and help them get their tax right.
“ The Self Assessment population is rising with more than 12 million people expected to fi le a return each year
10 | November 2024
www.bifa.org
Made with FlippingBook Annual report maker