Press releases

 


The Low Incomes Tax Reform Group (LITRG) has welcomed changes to the Self-Employed Income Support Scheme (SEISS) announced today, which will finally provide support to the self-employed and partnerships who began trading during the 2019/20 tax year.1 The change comes into effect for the fourth SEISS grant, which is to cover the three months from February to April 2021. However, as 2019/20 profits are now to be included in the calculation for all future claims, existing claimants might get a higher or lower amount than they previously received.

The Chartered Institute of Taxation has welcomed today’s announcement which clarifies the introduction of the new, harmonised interest and penalties rules for the late submission and/or late payment of VAT and income tax returns. CIOT is also pleased to see confirmation that a light touch will apply initially for certain late payments of tax under the new regime.

The Chartered Institute of Taxation has welcomed today’s announcement of a further £180 million investment in 2021-22 for additional resources and new technology for HMRC, but urges HMRC to ensure that represented taxpayers are not left behind.

The Low Incomes Tax Reform Group (LITRG) welcome the announcement of additional funds for HMRC’s compliance work in today’s Budget but point out that the two main areas earmarked for money – Job Retention Scheme fraud and the loan charge – contain intricacies that need specialist case handling.

The Low Incomes Tax Reform Group (LITRG) point out that furlough pay from now until September 2021 could be based on two-year-old pay data and would not take into account recent pay rises, including the April 2021 minimum wage rate rise, if existing rules remain in place.

The Chartered Institute of Taxation has welcomed today’s announcement that the trading loss carry-back rule will be temporarily extended from one year to three years, giving affected businesses a billion pound corporation tax refund.

Taxpayers may be disappointed by today’s Budget announcement that the personal income tax allowance will be frozen at £12,570 from the 2021/22 tax year, through to 2025/26.1 Depending on wage inflation over those five tax years, this could result in people paying more income tax in real terms.2 However, for those claiming universal credit, the Low Incomes Tax Reform Group points out that this blow is softened because that benefit is calculated on net income.3

The Chartered Institute of Taxation has welcomed today’s announcement by the Chancellor that those who commenced self-employment in the 2019-20 tax year can benefit from the fourth and fifth Self-Employment Income Support Scheme grants, but alerts potential claimants to new rules and HMRC compliance activity in relation to claims. The Institute also regrets that the government hasn’t gone further to fill some of the other gaps in support.

The Chartered Institute of Taxation (CIOT) has commented on the implications for the devolved tax regime in Scotland following today’s UK Budget.

Commenting on the House of Commons Treasury Committee's latest report as part of its inquiry into Tax After Coronavirus which was published today (1), the Chartered Institute of Taxation’s Director of Public Policy John Cullinane said: