Office of Tax Simplification: permanent establishment
Published 9 December 2015
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Who is likely to be affected
Users of the UK tax system, which covers those taxes, National Insurance contributions and duties administered by HM Revenue and Customs (HMRC), will indirectly benefit from tax simplification.
General description of the measure
This measure provides for the permanent establishment of the Office of Tax Simplification (OTS) in statute, specifies its functions and makes certain provisions for the governance and operation of the OTS.
Policy objective
Simplifying the tax system for both individuals and businesses is a key element of the government’s approach to tax policy making. This measure confirms the role of the OTS.
Background to the measure
This measure was announced at Summer Budget 2015.
The OTS was established as a temporary, non-statutory office of HM Treasury in July 2010 to advise the Chancellor on delivering a simpler tax system and providing independent advice on options for addressing existing complexity in the UK tax system.
At Summer Budget 2015, the Chancellor announced the government’s intention to introduce legislation to put the OTS on a permanent, statutory footing with an expanded role and capacity.
Detailed proposal
Operative date
This measure will have effect from an appointed day to be set out by HM Treasury in regulations.
Current law
There is no current law on the OTS.
Proposed revisions
Legislation will be introduced in Finance Bill 2016 which will provide for the permanent establishment of the OTS in statute, set out its functions and make provision for its governance and operation.
Summary of impacts
Exchequer impact (£m)
| 2015 to 2016 | 2016 to 2017 | 2017 to 2018 | 2018 to 2019 | 2019 to 2020 | 2020 to 2021 |
|---|---|---|---|---|---|
| Nil | Nil | Nil | Nil | Nil | Nil |
This measure is not expected to have an Exchequer impact.
Economic impact
This measure is not expected to have any economic impacts.
Impact on individuals, households and families
This measure is not expected to have any direct impact on individuals, households and families. However, these groups will benefit from tax simplification, including tackling legislative complexity and simplifying and streamlining tax administration.
The measure is not expected to impact on family formation, stability or breakdown.
Equalities impacts
There is no impact on groups with protected characteristics.
Impact on business including civil society organisations
This measure is not expected to have any direct impact on businesses (including small and micro businesses) and civil society organisations. However, these groups will benefit from tax simplification, including tackling legislative complexity and simplifying and streamlining tax administration.
Operational impact (£m) (HMRC or other)
The OTS will be a statutory office of the Treasury, so the costs to HMRC of implementing this measure are expected to be negligible.
Other impacts
Other impacts have been considered and none have been identified.
Monitoring and evaluation
The Treasury will review the effectiveness of the work of the OTS within five years of the commencement of this measure, with subsequent reviews taking place within five years of the completion of the previous review.
Further advice
If you have any questions about this change, please contact Matthew Henty on Telephone: 020 7270 4997 or email: matthew.henty@hmtreasury.gsi.gov.uk.