News

The Low Incomes Tax Reform Group (LITRG) is disappointed at a lack of progress towards rectifying an inequality which sees an estimated 1.5 million or more low-income workers paying a 25 per cent penalty for their pension savings. This issue can cost those affected (three-quarters of whom are women) around £65 a year due to the way their employers’ pensions schemes operate.

The Low Incomes Tax Reform Group (LITRG) has responded¹ to a major HMRC call for evidence on how the tax authority administers the tax system,² in which LITRG broadly supports reform of the tax administration system. But the group cautions that, to build trust, HMRC will need to prioritise certain problem areas when setting out plans for reform. LITRG therefore urges HMRC to create a clear roadmap for reform which sets out longer term goals as well as incremental changes needed towards those goals.

The Government’s fundamental review of the tax administration framework¹ is a golden opportunity to create a tax system that is simpler for taxpayers and their advisers to navigate, says the Chartered Institute of Taxation (CIOT).

The Office of Tax Simplification (OTS) should have a greater role in scrutiny of new tax proposals, says the Chartered Institute of Taxation (CIOT). This could include the development of a formal simplification framework against which the OTS can measure government proposals, and score its own recommendations.

The Low Incomes Tax Reform Group (LITRG) has welcomed a call by the Office of Tax Simplification (OTS) for a consultation into who is responsible for the accuracy of third party data, and for a broader review of safeguards and sanctions to ensure a taxpayer does not suffer the consequences of a data error which is not their own fault.

The Low Incomes Tax Reform Group (LITRG) is concerned that some people who have used a tax refund company to get a PPI (payment protection insurance) or working from home tax refund are now discovering that unconnected tax refunds are also going to the refund company, with further fees being deducted.

The Low Incomes Tax Reform Group (LITRG) is warning people who have claimed Self-Employment Income Support Scheme (SEISS) grants that this income is taxable and that they must make sure they complete their tax returns accurately by including the grants in the correct place.

The Chartered Institute of Taxation (CIOT) is calling on the Government to include non-compliant ‘umbrella’ companies and providers of tax software in their plan to give people a greater chance of redress from the impact of poor tax advice.

The Chartered Institute of Taxation (CIOT) has called for greater clarity on plans to devolve Air Passenger Duty (APD) to the Scottish Parliament, as it pointed out that a UK Government plan to cut aviation taxes to boost Union connectivity runs contrary to the Scottish Government’s plans for the tax.

A Treasury plan to cut aviation taxes to boost connectivity within the UK is inconsistent with the government’s wider climate change objectives, and there may be better ways to boost domestic connectivity without sacrificing climate targets, the Chartered Institute of Taxation has said.