It focuses on the reporting of data by third parties to help to ease the tax reporting of individuals’ savings and investment income, and the way individuals claim tax relief for pensions contributions or gift aided charity donations.

There are already some mechanisms in place for reporting bank and building society interest and other interest and pensions, but there is currently no such mechanism for third parties to report dividends and other investment income to HMRC. It is likely this would take longer to implement on a mandatory basis as both third parties and HMRC would have to create new systems.