Commentary on provisions of Act Section 1: Provision of digital etc services by HMRC: preparatory expenditure
Section 1 provides HMRC with the ability to incur expenditure in order to work on the design of a new digital service that will link local authority business rates systems with HMRC’s digital tax accounts. HMRC’s functions describe the activities that HMRC can undertake and define what it can expend its resources on. HMRC is a statutory body and its functions are set out in the Commissioners for Revenue and Customs Act 2005 and other legislation. HMRC does not have statutory authority to facilitate the administration of business rates by local authorities through its digital tax accounts.
	Subsection (1) will allow HMRC to expend resources in preparing for a digital service that will provide a link between local authority business rates systems and HMRC’s digital tax accounts. The work will include but not be limited to: stakeholder engagement; user research; product design and development; and testing services. Legislation would need to be introduced at a later date to provide the framework for the digital service itself, and to enable HMRC to operate it.
	Subsection (2) and (3) define digital services and non-domestic rates respectively.