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HMRC should be encouraged to do more to help employers and employees manage the post-pandemic trend of hybrid and distance working, says the Chartered Institute of Taxation (CIOT).

Commenting on the Office of Tax Simplification (OTS) report on the income tax rules for residential property income published today (Tuesday), Leigh Sayliss, Vice-Chair of the Chartered Institute of Taxation’s (CIOT) Property Taxes Committee, said:

HMRC’s performance standards need to be improved if the tax authority is to play its essential role in supporting taxpayers and businesses, the Chartered Institute of Taxation (CIOT) has told MPs on the House of Commons Public Accounts Committee (PAC).

If the Government is serious about ‘embedding simplification’ in the UK’s tax policy-making process it should retain the Office of Tax Simplification (OTS) and consider strengthening it, the Chartered Institute of Taxation (CIOT) has told the Chancellor.

The Low Incomes Tax Reform Group (LITRG) has written to the Financial Secretary to the Treasury (FST) suggesting improvements to the Government's proposals to make ‘top-up payments’ to low-income pension savers who currently miss out on government retirement savings incentives.

Increasing the data HMRC collects from businesses and employers risks placing significant extra burdens on these taxpayers, putting more stress on the tax authority’s already strained resources and means HMRC demand data from taxpayers that is not relevant to their core role to collect and manage revenue or tax credits, cautions the Chartered Institute of Taxation (CIOT).¹

Commenting on today’s government announcement that recent reforms to off-payroll working (also known as IR35) rules will be retained, the Chartered Institute of Taxation (CIOT) has called for a strategic review focused on tackling the underlying factors which incentivize contractor over employment relationships.

Following pressure from the Low Incomes Tax Reform Group (LITRG) to investigate the end-to end process used by Tax Credits Ltd, a tax refund company, to sign people up to its services, HMRC have announced they will now take steps to resolve the situation for affected taxpayers. LITRG welcomes this announcement but says there is more HMRC can do to tackle bad practice by certain companies.

The Chartered Institute of Taxation has responded to the Chancellor’s announcement that the UK basic rate of income tax will be reduced to 19p and the UK additional rate of income tax abolished from April 2023.

The Chartered Institute of Taxation (CIOT) has issued the comment below following the Chancellor’s announcement that the 1.25 percentage point increase in National Insurance is to be reversed from 6 November 2022.