Media and politics

Paul Morton reflects on his time as Tax Director at the Office of Tax Simplification, suggesting that non-tax professionals and ordinary taxpayers should have more of an influence on the OTS’ work.

A private member’s bill seeking to raise the VAT registration threshold and increase the number of exemptions was debated by MPs last week but will not become law.

No new statutory instruments (SIs) on tax or customs matters have been laid this week but there have been a number of developments in scrutiny committees, and these are set out below.

The government suffered another defeat yesterday, on a motion stating that MPs continued to support the government’s approach to Brexit withdrawal negotiations.

With a no-deal Brexit appearing increasingly likely, HMRC is now warning that, in that event, 245,000 businesses would face a tsunami of new customs declarations, tariffs and VAT obligations after 29 March.

The Treasury Committee has published its report on Budget 2018. The committee has emphasised the importance of the design of the Digital Services Tax (DST) taking account of consultation responses.

One new SI relevant to tax advisers has been tabled this week: Value Added Tax (Input Tax) (Specified Supplies) Regulations 2019. This is a ‘made negative’ resolution (see below), laid on Feb 5th with the objection period running out on Mar 16th.

The Finance Bill went through all its stages in the House of Lords yesterday, ahead of Royal Assent which is expected next week.

The Treasury Committee staged the latest witness session in its inquiry into tax enquiries and resolution of tax disputes this afternoon (6 February 2019). The Government's Making Tax Digital project was slated by FSB and ICAEW during the session, with the FSB making some grave predictions about its impact.

 

Peers have been debating the Trade Bill - the companion bill to the Taxation (Cross Border Trade) Act – which covers non-tariff barriers in relation to ‘transitioning’ the EU’s trade agreements to UK agreements. An amendment was passed last month to pause the Bill’s passage at the end of the committee stage until detailed proposals on future trade agreements have been published. In the meantime the committee stage continues.