Outlining its future projects over the next 12 months, the body said it would consider developments in other countries and also investigate the ways in which the digital economy might pose challenges for the simple administration of taxes. Blockchain, robotics, big data analytics and other new technologies will all be scrutinised in the project, the OTS said.

‘The rationale underlying this work is that developments in technology will have consequences too profound to pass over at this time,’ it added.

Alongside that project, the OTS is continuing its work on VAT, with the aim of publishing very shortly, in October or November 2017. Work has also commenced on a ‘high-level’ paper on the business lifecycle, looking at key events and the various taxes which apply at those points.

Following its review of corporation tax computation, which found the businesses see the capital allowances regime as a source of complexity, Chancellor Philip Hammond has requested the OTS undertakes a review of capital allowances. In particular, it will consider the possibility of using the depreciation charged in the financial statements instead of allowances. Work is underway, with the OTS already seeking views during the autumn with a view to publication of the report early in 2018.

Another proposed area of study is a review of aspects of the taxation of savings and investments.

‘This is a highly complex area which touches on a large number of taxpayers and its inclusion ensures that our work embraces the full range of taxes,’ the OTS said.

It also proposes to explore and scope the potential for a review of aspects of inheritance tax.

More long-term, the OTS will ‘continue to engage stakeholders’ on Making Tax Digital, the gig economy and will undertake a review of the structure of the tax system in other countries, particularly the US, Ireland, Netherlands.

The OTS's Future Work Plans can be viewed here.

Report by Calum Fuller