Administration of Scottish income tax 2019-20

HMRC should consider how it reflects the impact of COVID-19 in its calculation of the revenue outturn and estimate for future years, including consideration of what additional data might be available to refine the calculation and better reflect the uncertainties caused by the pandemic.

HMRC should review, by March 2022, how it can enhance the effectiveness of its third-party data comparison exercise in providing assurance over the accuracy of its address records, and in doing so should consider: • what additional action can be taken to reduce the proportion of records that cannot be matched to third-party data and the most appropriate time in the data-matching cycle to do so; and • whether there are additional ways HMRC can communicate with taxpayers to confirm an address where its records do not match third-party sources, including the possibility of the use of email or communication via employers.