News

The Chartered Institute of Taxation (CIOT) has noted the publication of draft legislation for the merger of the UK’s two different research and development (R&D) reliefs today but warned that the government faces challenges ensuring a merged relief is both simple and fair.

The Chartered Institute of Taxation has commented on figures estimating that the amount of research and development (R&D) tax relief error and fraud has been more than three times previous estimates.

The HMRC Charter annual report, published yesterday, shows that poor service levels are undermining HMRC’s ability to deliver on their Charter standards, says the Chartered Institute of Taxation (CIOT).

The Chartered Institute of Taxation (CIOT) is warning that HMRC’s efforts to get tough on abuse of research and development (R&D) tax relief are resulting in them rejecting legitimate claims and stone-walling other genuine claimants with a bureaucratic system driving them to give up on their claims.

The Low Incomes Tax Reform Group (LITRG) are warning people on lower incomes of the potential risks when answering an advert to become a director of a company in exchange for a fee.

A new report by the body tasked with investigating complaints against HMRC is further evidence that the tax authority is ill-equipped to deal with the pressures on its services.

The benefits of expanding tax relief for the installation of energy-saving materials in buildings may not be fully realised unless the government puts in place special rules enabling relief to be granted even where the installation is part of wider refurbishment work, says the Chartered Institute of Taxation.

‘Tax Gap’ figures published today show the gap remaining steady as a share of the tax that should be collected. The gap was up by £5 billion in absolute terms in 2021-22 but this is in line with an increase in the theoretical tax liability during a year when the tax take recovered from a sharp dip during the coronavirus pandemic.

The 10th anniversary of the introduction of the income tax cash basis is the right time for a review, says the Chartered Institute of Taxation, with simplification of the rules key to encouraging more businesses to use it.

The Chartered Institute of Taxation has welcomed today’s report from the House of Commons Treasury Committee on Tax Simplification, and in particular the committee’s call for the government to report annually to the committee on progress towards tax simplification.