Delta looking ahead to Digitisation of Relief at Source (DigiRAS),
HMRC are proposing fundamental changes to the way Relief at Source is processed. This project is the Digitisation of Relief at Source (DigiRAS), with a go-live date of April 2025
Rather than a summary return being passed to HMRC, all claims will be based on individual-level data to allow HMRC to accurately calculate the tax relief due. HMRC propose to “match” the member data between the schemes and their own records, if members don’t match, then tax relief will not be given. As well as requiring new processes to produce the required data, transmit it to HMRC and deal with any rejections, providers who pre-fund tax reclaims should also consider the impact rejection may have on them.
The volume of data required for the new process could be significant. Delta and other firms have been working with HMRC’s DigiRAS working group for a year, to ensure that the changes can be delivered with as much automation as possible to remove some of the heavy lifting around these new processes.