Tax system front and centre to addressing cost of living challenges, tax minister tells CIOT reception
The Financial Secretary to the Treasury (FST) praised the work of the Chartered Institute of Taxation and its Low Incomes Tax Reform Group and said the tax system would be central to the government's response to the cost of living crisis in remarks to the CIOT's Parliamentary Reception earlier this week.
The reception had originally been scheduled to take place in June but had been postponed as a result of that month’s rail disruption.
Lucy Frazer thanked the tax bodies for their input to the design of a range of government policies including the pandemic furlough scheme, the extension of the loss relief carry back scheme and pension tax relief equality for low earners, the latter of which LITRG has been campaigning for since 2018.
Frazer told the audience that the tax system would be front and centre to the government’s efforts to tackle the cost of living crisis, address climate change and harness technological innovation, telling the room: “not only does it (tax) bring in revenue to enable us to pay for vital public services…it also incentivises behaviours and actions in these areas and it’s really important that we get it right”.
The FST also highlighted the work of Tax Aid and Tax Help for Holder People, saying that their work supporting the elderly and vulnerable was ‘imperative’ and highlighting the successes of the charities’ ‘Bridge the Gap’ campaign.
Frazer added that the government would continue to ‘value the expertise and advice’ brought to bear on the tax system by CIOT and LITRG, telling the assembled guests that government would only be able to deliver “the most nimble, efficient and reputable services…with organisations like CIOT”.
Earlier, CIOT President Susan Ball used her remarks at the event to set out three tax priorities for the new UK government.
She stressed that Liz Truss’ new administration should take urgent action to improve the inadequate service levels within HMRC that have led to significant delays in the time taken to deal with taxpayer claims and queries, called for a review of the timetable of the implementation of Making Tax Digital for income tax to ensure that it was capable of meeting customer expectations, and urged ministers to be more ambitious with their efforts to simplify the tax system.
The FST would acknowledge the ‘cry for investment in HMRC’, telling guests that the government was looking into HMRC’s performance levels. Meanwhile, the call to intensify efforts to simplify the tax system and reflect on the timetable for introducing MTD received the support of Craig Mackinlay MP, who sponsored the event.
Mackinlay – himself a CTA in practice – acknowledged the work of the Office for Tax Simplification in driving efforts to reduce complexities in the tax system, and urged the government and the tax profession to continue to work cooperatively to improve the system.
Other attendees at the reception included HMRC’s chief executive, Jim Harra, MPs Peter Bottomley (Conservative), Peter Grant (SNP), Nigel Mills (Conservative), John Redwood (Conservative), Alison Thewliss (SNP) and Richard Thomson (SNP), and peers including Baroness Bottomley (Conservative) and Lord Fox (Lib Dem).