Press releases

 


MSPs are due to vote tomorrow to agree rates and bands of Scottish Income Tax for the 2021/22 tax year.

Ahead of the vote, the Chartered Institute of Taxation (CIOT) has outlined what the changes are likely to mean for Scottish taxpayers, as well as warning of the potential for further changes after next week’s UK Budget.

The Low Incomes Tax Reform Group (LITRG) is reminding taxpayers that they have only days to file their 2019/20 tax return online and avoid an automatic £100 late filing penalty. LITRG also advises that any tax owed for 2019/20 should be paid, or a payment plan set up, on or before 1 April 2021 to avoid a late payment penalty.1

Commenting on Tax Minister Jesse Norman’s proposed Tax Day, outlined in correspondence between Norman and the House of Commons Treasury Committee, John Cullinane, Chartered Institute of Taxation’s Director of Public Policy, said:

LITRG welcomes today’s long-awaited publication of the Evaluation of HMRC’s implementation of powers, obligations and safeguards, which comes after a long period of constructive engagement with LITRG and other stakeholders. LITRG has provided HMRC with feedback on the use of several powers in scope of the evaluation as well as the cross-cutting themes, as they affect low-income and unrepresented taxpayers.

The Low Incomes Tax Reform Group (LITRG) is calling on HMRC to pause any further action against taxpayers yet to meet their loan charge obligations. LITRG said this will take account of people on low incomes who remain unaware that they were placed in loan arrangements. Such a pause will enable HMRC to consider alternatives to sending formal enquiry letters and to address outstanding issues with the charge.  

The Income Tax proposals outlined by the Scottish Government in today’s draft Budget mean that taxpayers with income of more than £27,393 will pay more than those in other parts of the UK from this April.

The Chartered Institute of Taxation (CIOT) and Association of Taxation Technicians (ATT) have welcomed today’s announcement from HMRC that self-assessment late-filing penalties will be waived for returns filed before 1 March.

The Low Incomes Tax Reform Group (LITRG) is calling for the high income child benefit charge (HICBC) threshold to rise to avoid it hitting basic-rate taxpayers for the first time in April.1 LITRG says this is contrary to the original policy intent, and it is likely to cause the Government additional difficulties in raising awareness about the charge among those who do not consider themselves on a high income.

The Low Incomes Tax Reform Group (LITRG) is calling for the high income child benefit charge (HICBC) threshold to rise to avoid it hitting basic-rate taxpayers for the first time in April.1 LITRG says this is contrary to the original policy intent, and it is likely to cause the Government additional difficulties in raising awareness about the charge among those who do not consider themselves on a high income.

The Chartered Institute of Taxation (CIOT) is calling for timely relief for losses suffered by companies in the COVID pandemic period similar to that used in the past to keep more businesses afloat in an economic crisis.