In-Year Calculation and Payment for Income Tax Self Assessment and Corporation Tax for Small Companies

In response to HMRC's Summer 2021 Call for Evidence on opportunities and challenges of timely payment for Income Tax Self-Assessment (ITSA) and Corporation Tax for small companies, respondents:

In response, the government announced a voluntary In-year Calculation Proof of Concept (IYC PoC), to:

The IYC PoC, a unique collaboration opportunity, aims to:

•ingest real-time / close to real-time data from multiple sources, inc. intermediaries (OECD schema aligned)

•enable HMRC calculating and forecasting in real-time / close to real-time, in-year tax liability for ITSA customers using that data

• model technical challenges associated with a scale model, and ultimately shape the design of future tax policy and improve ITSA customer experience.

Potential intermediary benefits are:

• gaining first-mover advantage by being at the forefront of HMRC's innovation on using real-time / close to real-time data to achieve in-year tax calculations
• supporting the critical thinking necessary to shape the method of ingesting live data into HMRC
• using the IYC PoC to generate first-hand feedback from their users on the effectiveness of in-year tax calculations and insight into whether this makes intermediary services more appealing.

Potential intermediary user benefits are:

Selected intermediaries will help:

• build ingestion functionality for real-time intermediary data
• test HMRC's ability to generate in-year income tax liability using real-time intermediary data

Interested intermediaries should follow the instructions at Section 5. On receipt of an expression of interest, submissions will be assessed on their scale and scope, ability to provide the data required and availability to co-design intermediary and interface requirements. Our expectation is this joint-run value proposition is carried out on a pro-bono basis.

Additional information: Full details of the PoC are held in an eSourcing RfI using the HMRC SAP Ariba eSourcing tool. Please ensure you are registered with the HMRC SAP Ariba to gain access to the documentation (Guidance on how to register is provided as an attachment).

When you have obtained 'your organization's account ID' number, please email james.power1@hmrc.gov.uk copying in James.mak1@hmrc.gov.uk and e.procurement@hmrc.gov.uk with your account ID number. Once you have complied with the foregoing you will receive an e-mail confirming access to the RfI. Further information about HMRC's procurement tool SAP Ariba, a Suppliers Guide and general information about supplying to HMRC is available on the HMRC website: www.hmrc.gov.uk/about/supplying.htm If you have already registered on SAP Ariba then you may also need to re-register on HMRC's SAP Ariba in order to be added to the event.