The House of Lords Finance Bill Sub-Committee today invites
contributions to its inquiry on the draft Finance Bill 2026-27.
The Sub-Committee will focus on the following provisions included
in the draft Bill:
- Modernising the correction of errors
- Mandatory reporting of benefits in kind in Real Time
Information from April 2027
- Reforming customs rules for low value imports.
This inquiry seeks written answers to these questions:
Modernising the correction of errors
- How do you expect this measure to operate in practice and
what effects do you expect it to have, particularly on taxpayer
compliance?
- Does the measure strike a proportionate balance between the
taxpayer and the tax authority?
- What are your views on the proposed sanctions for
non-compliance?
- How straightforward is it likely to be for taxpayers to
understand their obligations under this measure?
- Are there alternative means of achieving the policy
objectives of this measure?
- How might this measure interact with other taxpayer duties
and HMRC powers?
- What are your views on how this measure was developed and
consulted on?
Criminal offence of reckless untrue statements and
declarations
consultation
- What are your views on the need for a new criminal offence of
making reckless untrue statements or declarations in direct tax
matters, as is currently being consulted on? How effective do you
expect such an offence to be at improving taxpayer compliance?
Mandatory reporting of benefits in kind in Real Time
Information from April
2027
- How straightforward will it be for employers to report
benefits in kind through real time information, in relation to
Phase 1 benefits from April 2027 and Phase 2 benefits from April
2028?
- How prepared are employers of all sizes for the changes? What
support may be needed from HMRC ahead of the changes?
- How will the measure affect businesses' administrative
burdens once implemented? Does this differ for those that will
continue to report some benefits using P11Ds?
- What are your views on the revised delivery timetable for
mandatory payrolling of benefits? Are the proposed start dates of
April 2027 and April 2028 achievable?
- How realistic are HMRC's estimates of the costs to businesses
of complying with this measure?
- What are your views on how HMRC has approached the design and
delivery of this measure since it was first announced in 2024?
Have HMRC taken appropriate steps to ensure that they understand
that challenges business may face in mandatory payrolling
benefits?
Reforming customs rules for low-value
imports
- Are the proposed mandatory new customs arrangements an
appropriate response to the increase in low value imports in
recent years?
- What are your views on the timetable of introducing the new
customs arrangements for low-value imports by October 2028 at the
latest?
- How straightforward will it be for businesses to adjust to
the new system? How best can HMRC support businesses to prepare
for the change?
- How is this measure likely to impact UK businesses and
consumers generally?
, Chair of the Finance Bill
Sub-Committee, said:
In its draft Finance Bill, the Government is proposing measures
to modernise the correction of errors and consulting on the
introduction of a new criminal offence of making reckless untrue
statements or declarations in direct tax matters; mandatory
reporting of benefits in kind in Real Time Information; and
reforms to customs rules for low-value imports.
"If you have a view on any aspect of these proposed measures,
please let us know what you
think.
The deadline for the submission of written evidence is
5pm on Sunday 11 October 2026
Click here for more information on
the inquiry and details on how to submit evidence.
