Blog

MPs voiced concern about the current VAT threshold, suggesting that it creates a cliff edge for growth. The government responded by saying that the UK’s VAT threshold is the highest in Europe and the joint highest in the OECD, and that views are divided among businesses over its level.

On 12 June, the House of Commons Public Accounts Committee (PAC) examined HMRC’s strategy for taxing wealthy individuals, questioning HMRC officials on the extent of non-compliance among wealthy taxpayers and whether HMRC need to do more to close the ‘wealthy tax gap’.

CIOT and IFS hosted an online debate on 16 June 2025 on international tax co-operation with speakers Chenai Mukumba (Tax Justice Network Africa), Paul Oosterhuis (US-based international tax practitioner), Tim Power (HM Treasury and OECD Committee on Fiscal Affairs) and Tim Sarson (KPMG UK).

In a statement made on 10 June at the Senedd, the Welsh finance secretary set out a number of consultations that the Welsh government is currently conducting to make local taxes fairer, including the launch of a ‘practical investigation’ into valuation of land to help assess the feasibility of introducing land value tax in place of council tax and business rates.

In this guest blog, Shimeon Lee, policy analyst at the TaxPayers’ Alliance, discusses the rising tax burden on entrepreneurs and suggests a number of ways the government could use the tax system to encourage entrepreneurship.

At JP Marks’ first Treasury Committee grilling on 4 June, the new chief executive and other HMRC officials faced criticism over poor customer service performance and a phishing scam that saw scammers steal £47 million from online accounts. HMRC said that they were grappling with increasing demand, system constraints and a growing threat of digital fraud.

During a Westminster Hall debate on 3 June, MPs criticised the government's inheritance tax changes, suggesting that they would threaten family farm businesses' sustainability, potentially leading to job losses and reduced investment. A government minister disagreed, arguing that their approach is “fair and balanced”.

During a Westminster Hall Debate on 4 June, MPs criticised the current business rate system, suggesting that the making relief less generous was hurting businesses. A minister defended the government’s approach, saying it is a priority for the government to ensure that high street businesses are protected.

Departing CIOT President Charlotte Barbour gave her valedictory speech at the Institute's Annual General Meeting on 29 May 2025

In her speech to CIOT’s Annual General Meeting on 29 May new President Nichola Ross Martin encouraged the government to take a more strategic approach to tax policy and said that making a success of MTD will need HMRC and tax professionals to continue to work closely together.