Draft Finance Bill 2026–27

The Finance Bill Sub-Committee, chaired by Lord Liddle, is appointed annually by the Economic Affairs Committee to consider the Finance Bill. The Sub-Committee considers issues of tax administration, clarification, and simplification. It does not consider the rates or incidence of tax.

The draft Finance Bill clauses were published on 13 July 2026 for consultation. The Sub-Committee's inquiry will consider the following three provisions of the draft clauses:

This is a public call for written evidence to be submitted to the Sub-Committee.

The deadline for written submissions is 5pm on Sunday 11 October 2026.

After it has concluded its inquiry, the Sub-Committee will set out its recommendations in a published report.

The Sub-Committee welcomes views on the following questions below. We are interested to hear from taxpayers, their advisers, relevant organisations, and any other interested parties.

There is no obligation to answer every question, only those which are relevant to your interest and expertise.

Questions

Modernising the correction of errors

1. How do you expect this measure to operate in practice and what effects do you expect it to have, particularly on taxpayer compliance?

2. Does the measure strike a proportionate balance between the taxpayer and the tax authority?

3. What are your views on the proposed sanctions for non-compliance?

4. How straightforward is it likely to be for taxpayers to understand their obligations under this measure?

5. Are there alternative means of achieving the policy objectives of this measure?

6. How might this measure interact with other taxpayer duties and HMRC powers?

7. What are your views on how this measure was developed and consulted on?

Criminal offence of reckless untrue statements and declarations consultation

8. 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

9. 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?

10. How prepared are employers of all sizes for the changes? What support may be needed from HMRC ahead of the changes?

11. How will the measure affect businesses’ administrative burdens once implemented? Does this differ for those that will continue to report some benefits using P11Ds?

12. 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?

13. How realistic are HMRC’s estimates of the costs to businesses of complying with this measure?

14. 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

15. Are the proposed mandatory new customs arrangements an appropriate response to the increase in low value imports in recent years?

16. What are your views on the timetable of introducing the new customs arrangements for low-value imports by October 2028 at the latest?

17. How straightforward will it be for businesses to adjust to the new system? How best can HMRC support businesses to prepare for the change?

18. How is this measure likely to impact UK businesses and consumers generally?

Diversity comes in many forms and hearing a range of different perspectives means that committees are better informed and can more effectively scrutinise public policy and legislation. Committees can undertake their role most effectively when they hear from a wide range of individuals, sectors or groups in society affected by a particular policy or piece of legislation. We encourage anyone with experience or expertise of an issue under investigation by a select committee to share their views with the committee, with the full knowledge that their views have value and are welcome

Evidence goes to the committee through Parliament’s own form. There is no way to submit it from here: Parliament publishes no API for written evidence, so the button above opens the committee’s page.

What you send is published under your name and can be quoted in the committee’s report. Keep it under 3,000 words, send it as a document rather than a letter in the body of an email, and answer the questions above rather than writing generally.