Important changes to the tax system

HM Revenue and Customs (HMRC) is reminding taxpayers that a number of important new measures are due to come into effect in April.

As from 1 April, HMRC will have one set of powers and safeguards covering PAYE, VAT, Income Tax, Capital Gains Tax and Corporation Tax.

A new two-tier system of tax tribunals comes on stream, a first-tier tribunal and an upper tribunal. General Commissioners, Special Commissioners and the VAT & Duties Tribunal will no longer exist.

There are also changes to simplify the entry and leaving rules for small businesses using the VAT flat rate scheme.

As from 6 April, employers with 50 or more employers will have to file their employee starter and leaver notifications and similar pensions notifications online.

A new A4 version of the P45 form will replace the old style A5 form. And changes to form P46 (Car), used for reporting the private use of cars supplied by employers, will be introduced.

Dave Hartnett, HMRC Permanent Secretary for Tax, said: “These are important measures which will make it easier for businesses and their advisers to meet their obligations whilst making it easier to work with us and to get decisions on points of law. These initiatives will provide businesses with more consistency, certainty and faster on-line processing of key documents.”