Low Incomes Tax Reform Group
The Low Incomes Tax Reform Group (LITRG) is an initiative of the Chartered Institute of Taxation. One of the CIOT’s key aims is to achieve a more efficient and less complex tax system for all. The LITRG supports these aims by seeking to make the tax system more equitable and accessible for those on the lowest incomes who are unable to pay for professional advice.
LITRG’s work is split into two strands – the provision of information and policy work. Through the LITRG website, free comprehensive information, guidance, and support is given to taxpayers, tax credit claimants, and their advisers. LITRG’s policy work involves commenting on proposals, putting forward ideas for improving the system from the perspective of those unable to pay for advice and analysing interactions between the tax and benefit systems.
LITRG works extensively with HMRC, the Department for Work and Pensions (DWP), HM Treasury, Revenue Scotland, Scotland Office, the Welsh Government, and the Welsh Revenue Authority as well as other government departments, local authorities, and devolved administrations.
Who do LITRG help?
Since 1998, LITRG has been working to improve the policy and processes of the tax, tax credits and associated welfare systems for the benefit of people on low incomes. Everything they do is aimed at improving the tax and benefits experience. They have no strict definition of ‘low income’ but instead consider issues in relation to people’s means and the extent to which they might not be able to afford professional advice.
Generally, LITRG do not directly help individuals, but instead try and point people in the direction of where they can best help themselves. For information on where to go for official tax guidance, or individual advice or assistance, visit the Getting Help page on the LITRG website.
25th Anniversary
In 2023, the CIOT’s Low Incomes Tax Reform Group celebrated its 25th anniversary. LITRG was established in 1998, when John Andrews, then President of the CIOT, identified the need for low income, unrepresented and often vulnerable taxpayers to be better supported by the tax profession and for their voice to be heard by those administering the tax and related benefits system. In the quarter of a century that has passed since it was formed, LITRG has fulfilled its original mandate by campaigning for and securing many improvements to the tax and benefits systems for unrepresented taxpayers. Many of the issues LITRG grappled with in its first 25 years remain as relevant today as they did back in 1998. But there are new challenges too, especially with the push to digitise the tax system, the rise of the gig economy and the continued strains on HMRC’s resources. LITRG’s work continues to be necessary and important.
Today, LITRG’s website guidance is used by over 5 million people each year. The guidance is used by a wide range of people including taxpayers, advisers - both those in the profession and in the welfare advice sector, government officials and journalists.
LITRG’s 25th anniversary offers an opportunity to look back at the evolution of the group and its successes in making the tax system better for those on low incomes. Thanks to the hard work and dedication of staff and volunteers, and the relationships that have been established and nurtured over two and a half decades, there is much to reflect on with pride. Read more about LITRG's 25th anniversary in the July 2023 issue of Tax Adviser magazine.