Mar 22, 2022

HMRC is being urged to not change the way self-employed workers register for tax but to raise awareness of the process instead.

The Government has called for evidence into taxpayers' insight on whether the current registration system should be reformed.

Newly self-employed tax-payers and landlords, among many others, are currently required to register with HMRC to pay their income tax no longer than six months after the end of the current tax year.

There are fears that any changes to the current system could impact many sectors, especially small businesses and sole traders, causing confusion with payment deadlines and the amount of tax owed to HMRC.

John Cullinane, director of public policy at the Chartered Institute of Taxation, said:

"There is no need for HMRC to inflict significant upheaval on the newly self-employed and first time landlords with the changes to when they register to pay income tax.

"We believe that the current Income Tax Self Assessment registration process works well for most taxpayers and there is insufficient evidence to change the current statutory deadline which is six months after the end of the tax year in which the business starts."

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