Press releases

 


Tax campaigners have warned that the abolition of Class 2 National Insurance contributions from April 2018 (which the Government has now confirmed will go ahead) will result in the lowest earners among the self-employed potentially paying five times more than they do now to secure entitlement to a state retirement pension. 

The body representing Scotland’s tax professionals has reiterated its support for plans to place the Scottish Fiscal Commission on a statutory footing from next year, but restated the importance of ensuring that the privacy of data relating to individual members of the public is maintained.

Tax advisers have today welcomed the government’s announcement that proposals to penalise ‘enablers’ of tax avoidance schemes will be focussed on abusive arrangements that “no one could mistake for a reasonable commercial arrangement.”

Today the Government has published a policy paper on aligning the point at which employer and employee National Insurance Contributions (NICs) start to be paid. The LITRG highlights that more could be done to help low-income employees by pursuing a different alignment – that of the primary (employee) threshold for NICs with the point at which income tax starts to be paid, the personal allowance. 

The Autumn Statement included a note that the tax treatment of foreign pensions will be changed so that it is more closely aligned with the UK’s domestic pension tax regime and this has been confirmed in today’s publication of draft Finance Bill 2017 clauses. The LITRG highlights that this could present HMRC with an opportunity to simplify how tax is collected on foreign pensions.

The LITRG have welcomed today’s report by the Work and Pensions Committee which supports our recent recommendation for an independent review of tax credit compliance processes and highlights the many flaws in the manner in which HMRC investigate tax credit claims.

A new report by the LITRG calls for urgent action to ensure that government digital services take greater account of people who face difficulties using the internet or who are unable to go online.

The Chartered Institute of Taxation (CIOT) has announced that it now has more than 18,000 members. This means the Institute’s membership has doubled in the last 23 years.

The LITRG has welcomed the Autumn Statement announcement that HMRC will make in-year award adjustments so that higher disability rates of the child element of Child Tax Credit (CTC) will be paid to those who are currently eligible but not receiving their entitlement. 

The Chancellor’s announcements on salary sacrifice are intended to introduce fairness and coherence to the rules, but unless the lowest paid are also able to benefit from approved salary sacrifice arrangements such as childcare vouchers, the new regime will be neither fair nor coherent for them, say campaigners for those on low incomes.