News

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.

Hundreds of thousands of tax credit claimants, who had their claims auto-renewed last year due to the covid pandemic, will have to complete and return renewal declaration forms this year by 31 July or lose their entitlement, the Low Incomes Tax Reform Group (LITRG) is warning.

The Low Incomes Tax Reform Group (LITRG) says this week’s long-awaited announcement of the launch of a Single Enforcement Body (SEB) for employment rights is a step in the right direction to protect low-income umbrella company workers. But LITRG says the inevitable time and complexity involved in setting up this new workers’ watchdog must not prevent HMRC from acting now to combat some current tax abuses affecting workers in umbrella companies, such as disguised remuneration.

The Low Incomes Tax Reform Group (LITRG) is adding its voice to growing calls for regulation of umbrella companies, starting with implementing previous proposals. So far proposed legislation has not been implemented, the Single Enforcement Body has not materialised and there is no current Director of Labour Market Enforcement. As a result, low-income workers continue to be at risk of working through non-compliant umbrella companies, warns LITRG.

The Chartered Institute of Taxation (CIOT) has welcomed the Government’s decision to amend the current Finance Bill to pay interest to businesses where VAT repayments are delayed due to an enquiry by the tax authority.¹ The Institute had been arguing for this change.

The Chartered Institute of Taxation (CIOT) and ICAS (the Institute of Chartered Accountants of Scotland) are calling on Scotland’s political parties to improve public awareness of devolved taxation in the next Scottish Parliament, as a new poll shows that a third of Scots are unaware that the Scottish Parliament has made changes to the tax system.

The Chartered Institute of Taxation (CIOT) is calling for specific reforms to the taxation of trusts despite the Government pulling back from a wholesale review of this area.