In the news: April 2024

‘If you’re getting beyond a simple business, that’s the time to start thinking about getting professional advice. Software won’t make all the decisions, such as can I get an allowance or is this item deductible.’

Emma Rawson, ATT technical officer, in the Financial Times on Making Tax Digital, 9 February. Article also quoted Stuart Miller of CIOT/ATT digitalisation and agent services committee.

‘Who would design an income tax system like Scotland’s from scratch? … The Chartered Institute of Taxation warns the new six-band system will make it “more difficult for Scottish taxpayers to easily understand their tax affairs”.’

The Herald, 15 February

‘Landlords and business owners will have to pay £196 million a year, an average of £110 each, to comply with Making Tax Digital… Richard Wild, of the Chartered Institute of Taxation, said the latest figures are “evidence of a growing recognition by HMRC that the ongoing financial costs of MTD to business are much higher than they originally estimated, and those now in scope should expect to incur ongoing costs rather than generating efficiency savings”.’

Daily Telegraph, 22 February

‘The freezing of income tax thresholds has been a huge revenue-raiser for the government since the policy was introduced in 2022, having been announced in the previous year’s Budget… It would be very expensive for the government to reverse this policy.’

George Crozier of CIOT, speculating on potential Budget tax changes, Daily Telegraph, 26 February

‘Customer service at HMRC has reached an all-time low, MPs have warned… Gary Ashford, President of the Chartered Institute of Taxation said: “HMRC’s customer service levels remain unacceptably poor and they are being under-resourced for what they need to provide.” ‘Victoria Todd, Head of the Low Incomes Tax Reform Group, said: “We do not believe HMRC’s current digital services, including guidance and the automated digital assistant, are of a sufficient standard to support a forced channel shift to digital.”’

Daily Telegraph, 28 February