Press releases

 


People who claimed tax credits during 2017/18 and who have received renewal forms from HMRC, must act by July 31 so that their payments do not stop, advises the Low Incomes Tax Reform Group (LITRG).

The Low Incomes Tax Reform Group (LITRG) has given a qualified welcome to a new ‘penalty point’ model for late submission of tax returns, contained in draft legislation published today. The group thinks the penalty point approach should be easy for taxpayers to understand, but is concerned that other aspects of the new regime may prove more complex.

The Chartered Institute of Taxation (CIOT) has told MPs of its concern at HMRC’s apparent eagerness to litigate rather than make concessions to reasonable viewpoints when advised that there is less than 50 per cent chance of successful legal action. The Alternative Dispute Resolution (ADR) should be promoted more widely as a means of curbing this unwelcome trend, which is resulting in an ever increasing number of Tribunal cases, says the Institute.

Commenting on the appointment of Kate Forbes MSP as Minister for Public Finance and Digital Economy, with a remit that includes responsibility for supporting the Finance Secretary on the management of tax policy, Moira Kelly, chair of the Chartered Institute of Taxation's Scottish Technical Committee, said:

The Chartered Institute of Taxation has commented on the OTS’ publication of its Accounting depreciation or capital allowances? Simplifying tax relief for tangible fixed assets report.

The Chartered Institute of Taxation (CIOT) and Association of Taxation Technicians (ATT) would be concerned at any move to reduce the £85,000 VAT threshold without additional help for businesses to smooth their transition to becoming VAT registered.

The Scottish Government has confirmed that it will introduce legislation clarifying that a tax exemption for businesses transferring ownership of property within a group of companies using shares as financial security has been available since the introduction of Land and Buildings Transaction Tax (LBTT) in 2015.

The CIOT has argued in written evidence to the Treasury Sub-Committee’s Tax Avoidance and Tax Evasion Inquiry that HMRC should direct more resources to tackling illegal tax evasion activity given its persistence in Tax Gap figures, rather than simply pile on legislative changes.

Tax professionals have stressed the need for greater support from HMRC to help businesses get their VAT right and close the VAT gap.

The Low Incomes Tax Reform Group (LITRG) has highlighted that some people on zero hours contracts will not see the full benefit of any premium added to the National Minimum Wage. This is because of knock on deductions in their entitlement to welfare benefits. LITRG is also concerned about how employers would react to such a premium, and has set out its own recommendations on how the Government could better support these vulnerable workers.