Press releases

 


As a result of the coronavirus situation, people will be looking at their finances. The Low Incomes Tax Reform Group (LITRG) warns that there may be tax and welfare benefit consequences to drawing on savings, which mean that people may not receive as much as they expect. LITRG is advising people to consider things carefully before they act. 

Commenting on the launch of a call for evidence today on standards in the tax advice market, CIOT President Glyn Fullelove said:

The Chartered Institute of Taxation (CIOT) welcomes last night’s announcement that the controversial ‘off-payroll’ rules will be deferred until April 2021, but on the eve of publication of the Finance Bill urges the government to defer other April 2020 changes, too.

The Government should have held an open, public consultation on Entrepreneurs’ Relief before deciding the relief’s fate, says the Chartered Institute of Taxation (CIOT).

Today’s Budget announcement1 that the lifetime limit for Entrepreneurs’ Relief will be reduced from £10m to £1m with immediate effect was against a background of speculation about the fate of this relief, a relief that has been subject to widespread criticism on many fronts - for costing too much, not encouraging start-ups and being claimed by relatively few people.

The Chartered Institute of Taxation (CIOT) has welcomed the fundamental review of business rates and the extension of reliefs to support business in the face of COVID-19 but called for continued focus on the need for clarity and certainty for those businesses who will be continuing to pay rates through the crisis.

The government has today announced support for small and medium-sized businesses and employers to cope with the extra costs of paying COVID-19 related Statutory Sick Pay (SSP) by refunding eligible SSP costs. The government has also recognised that its existing systems are not designed to facilitate such employer refunds for SSP and intends to set up a repayment mechanism for employers over the coming months.

It was announced in today’s Budget1 that a new interactive tool will be available in the summer to help the self-employed understand their tax position by providing specific information for their business. LITRG considers online tools that aim to help users make tax-related decisions helpful, provided they are implemented wisely and that they supplement, rather than replace, existing guidance.

The Chartered Institute of Taxation (CIOT) welcomes the announcement today that the government will publish an evaluation of the introduction of Making Tax Digital (MTD) for VAT along with related research, with the implication that this will be done before rolling out MTD to other taxes.

The Chartered Institute of Taxation welcomes the Chancellor’s announcement that the ‘threshold income’ for triggering the rules on tapering of the pensions tax annual allowance will be increased from £110,000 to £200,000 with effect from 6 April 2020. 

The Chartered Institute of Taxation (CIOT) welcomes today’s Budget announcement that the government will introduce a new way for importers to account for import VAT from 1 January 2021.