HM Revenue and Customs (HMRC) is aiming to increase its use of digital prompts in tax collection.
It has referred to the effort in its recently published annual report and accounts, saying the prompts are a simple tool that can help customers get their tax right outlining three relevant initiatives.
One is to trial more personalised and targeted prompts, including one for customers in receipt of Covid-19 support scheme grants to account for the payments properly. The second is to work on prompts with commercial tax software vendors to maximise the impact on customers who no longer use HMRC software for filing.
The third is to develop a prompt for people on self-assessment who do not contribute to private pensions, directing them to the Money Helper website for guidance.
The moves are part of the department’s efforts to make sure customers get their tax right and prevent non-compliance through its processes and services. The report refers to the ‘prevent, promote, respond’ approach based on HMRC’s understanding of risks and behaviours in each customer group.
