Press releases

 


The UK government should rethink its strategy for the digitalisation of tax and defer its introduction, amid fears the current timetable and lack of information underpinning its implementation could undermine voluntary compliance and trust in the tax system.

While generally supportive of HMRC’s digital drive, the LITRG said the success of voluntary online self-assessments shows that the benefits of a digital administration can be achieved without forcing the smallest businesses to maintain digital records and make digital reports to the tax authority every quarter. 

The results of a survey of members of the Chartered Institute of Taxation (CIOT) and the Association of Taxation Technicians (ATT) have strengthened the two bodies’ concern that the timescale for implementing compulsory digital record keeping is unrealistic and must be delayed.

This statement is circulated on behalf of the Chartered Institute of Taxation, the Association of Taxation Technicians, the Association of Accounting Technicians, the Association of Chartered Certified Accountants, the Institute of Chartered Accountants in England and Wales, the Institute of Chartered Accountants of Scotland and the Society of Trust and Estate Practitioners.

The Low Incomes Tax Reform Group (LITRG) has welcomed the Government’s pledge to make bonuses it adds to its two new flagship savings schemes tax-free but is concerned that many questions remain unanswered about the schemes’ impact on means-tested benefits.

The Chartered Institute of Taxation (CIOT) is concerned that the Government’s planned changes to how termination payments, such as redundancy payments, should be taxed are too complex and likely to confuse people trying to grapple with the multiple issues that come with a sudden loss of a job.

The Chartered Institute of Taxation (CIOT) has welcomed figures published today showing a fall in the overall ‘tax gap’, but is concerned over growth in unintentional non-compliance. The levels of error (£3.2 billion) and mistakes through not taking reasonable care (£5.5 billion) are both up on the previous year.

Tax experts are warning that government proposals to penalise ‘enablers’ of tax avoidance schemes are too widely drawn and could result in some taxpayers and businesses being unable to get expert advice on complicated and often unclear areas. 

Proposals to redesign Scotland’s system of business rates can strengthen local democratic accountability, or increase the system’s efficiency, but it will be hard to achieve both at once, according to tax professionals.

The Chartered Institute of Taxation (CIOT) is cautioning the Welsh Government to ‘tread carefully’ with the higher rate bands for its new Land Transaction Tax (LTT) or risk deterring people from moving, which may result in a significant loss of tax revenue.