It’s a wild idea but I would make sure the Explanatory Memorandum to the tax legislation explained the purpose of the provisions, instead of paraphrasing their literal meaning. Purposive construction is the norm but the specific purpose is often opaque. We cobble it together from consultation papers, old press releases and Hansard transcripts. I once worked on a case that was decided by looking at the handwritten notes of a Parliamentary draftsperson to confirm why a specific phrase was used. At least some of that revelatory insight needs to be included in the explanatory materials.
Julian Feiner, Head of Tax, DAC Beachcroft
Something we can absolutely do better here in the UK is granting binding certainty to large taxpayers across a much wider range of topics. Rulings and clearances rather fell out of fashion following the controversy over state aid in the EU and ‘sweetheart deals’ here a decade ago. But the result is that it’s practically impossible for a business to get certainty from HMRC on anything other than a few niche areas of (usually new) legislation, bits of the customs code, and transfer pricing.
This has real world impacts. Take incentives like the RDEC, or reliefs like capital allowances. When a company is planning a large capital project it will only model tax benefits in its project appraisal if it can be reasonably sure it will get them. Otherwise it will make prudent assumptions, with any successful claim being a windfall after the event. That’s not good if we want to encourage investment.
It’s time to refresh our ruling and clearance system and give it real breadth and teeth. I’d suggest it covers at least capex reliefs, R&D credits and patent box, permanent establishment status, and loss utilisation. Limit the burden on HMRC with materiality thresholds. This is about tilting the balance for those really large, important decisions that will drive the future of the UK economy.
Tim Sarson, UK Head of Tax Policy, KPMG
The one point I find myself coming back to again and again is the classification of overseas entities for UK tax purposes. The funds I work with are typically raising money from investors globally and investing in a broad range of jurisdictions and so I commonly come across different vehicle types that need to be analysed from a UK tax perspective – often not a straightforward task! It’s an issue I see outside of the funds context too, and it seems that there is always someone in our tax group looking at a version of this question whether it is considering if an entity is transparent or opaque for UK income tax purposes, questions as to treaty eligibility or the ability to benefit from the qualifying private placement exemption, or concerns around an entity breaking a stamp duty group. While the HMRC entity classification list is helpful, I would love to see a more comprehensive system that could provide more certainty in this area.
Laura Underhill, Partner, Clifford Chance
After almost 20 years of trying, I have recently enjoyed some moderate success in explaining section 431 elections and AMV versus UMV without clients’ eyes entirely glazing over. However, as per the now defunct Office of Tax Simplification proposal, it would be much simpler for all concerned if the default position were reversed so that restrictions are automatically disapplied unless the employee elects otherwise. As an alternative, further clarity around the tax treatment of LLP members on the receipt of equity in related vehicles would be welcome. For example, where LLPs are part of a group, it is not unusual for LLP members to hold equity in a parent entity, but the tax rules do not adequately cater for this. The need to consider miscellaneous income/sale of occupational income case-law, the mixed member rules, etc. creates real uncertainty for clients.
Daniel Hawthorne, Partner, Dechert
As founder of the UK Taxpayer Fairness campaign (taxpayerfairness.org), I’m championing the introduction of a Taxpayer Bill of Rights, supported by a Taxpayers Rights Code, backed up by a powerful independent Taxpayer Advocate Service to ensure independent oversight and accountability of the administration of the tax system. The US Congress successfully enacted laws in 1998 imposing procedural fairness rules on their Inland Revenue Service, providing a template for the UK. It would lead to fairer treatment of taxpayers, help to curb any abuses of power, leading to better legislation and a reduction in tax tribunals.
Dave Chaplin, CEO, IR35 Shield
Wired Orthodontics Ltd v HMRC [2024] UKUT 266 (TCC) is a decision on an oral application to the Upper Tribunal (UT) for permission to appeal (PTA). I believe this is the first decision to be published under the UT’s new policy on publication of decisions to refuse permission following an oral renewal hearing. This is a really positive step in allowing all advisers and potential litigants to understand when litigation has come to an end, and also to see the reasoning behind the UT’s PTA decisions.
Laura Poots, Barrister, Pump Court Tax Chambers
The ever-evolving methodology for resolving disputes adopted by HMRC has a big impact on my day-to-day job. The current mechanism can be prohibitively linear (the matter goes from A to B to C), rather than what might be considered a more efficient strategy with A, B and C all reaching a cohesive agreement (as happens in the High-Risk Wealth Programme cohort). The length of time it takes to resolve anything is becoming very protracted.
The Failure to Correct 200% penalties are not helping with some dead lock positions. These penalty levels are giving people a reason to fight which is obstructing settlement. The rationale and driver for these penalties was great in the context of Requirement to Correct but it was perhaps only appropriate in that short time window.
Helen McGhee, Partner, Joseph Hage Aaronson
Basis period reform is causing real problems in practice. This was legislated for in FA 2022, so it isn’t exactly new. However, we’re just now in the process of preparing the first self-assessment returns affected by the transitional rules, and issues continue to come out of the woodwork.
The transitional rules are very complicated, and although the reform is specific to income tax and only affects a relatively small proportion of taxpayers, its tendrils spread quite widely across the tax and benefits system. As a result, it’s rare that a week goes by without some new query coming to me. As and when I get answers to these, I add them to our dedicated FAQs on the ATT website.
Emma Rawson, then Technical Officer (now Director of Public Policy), The ATT
When I was a large business tax inspector, to me tax was about particular arrangements entered into by individual businesses. When I became a policy official in HMRC head office I saw it was really about the design and integrity of legislative regimes. Then, when I moved to the Treasury, I saw it was really about politics – both domestic and between different countries (or blocs of countries) competing to defend their interests. All of those perspectives are useful, but I think it’s hard to overstate how political tax is, and the extent to which that shapes tax policy proposals, including seemingly technical ones.
Bezhan Salehy, Tax Policy Specialist, Macfarlanes
I began computer programming for fun around 1974, using punch cards which were sent to the large computer at Keele University, with the results being received a week later. If you made a programming error, it would take a week to become aware of this, and a further week to correct it. I failed to appreciate at the time that this was a possible career, and instead entered the law.
Stephen Goldstraw, Partner, Penningtons Manches Cooper
How long a career is. Once you’re a partner, you’re a partner for the long haul. I love the variety and responsibility of partnership – but don’t think I looked much beyond the aspirational title at the start of my career. Had I known that I’d probably spend more of my life as a partner than working to be one, I might have been in less of a hurry!
Ceri Stoner, Partner, Wiggin
The careers advice that I would give my earlier self would be to learn how to network in a way that is authentic and to get out and do it. Networking is a key skill as a private client adviser as it is a source of work, a resource to help with client issues and a way broaden your knowledge of the private client world. Early in my career, I avoided anything labelled as a networking event, but I soon learned that there were different ways to network which didn’t always involve being somewhere in the evening with a drink. Social media, such as LinkedIn, is a great way to get yourself out there, and I have really enjoyed building my network that way. Breakfasts, lunches, dinners and coffees with smaller groups of people where you have things in common are also a great way to network.
Jo Bateson, Partner, Mercer & Hole
My advice to all staff (not just trainees) is to grab as many new experiences as possible and get involved in everything, even if it seems daunting, from technical tax problems, to presenting, writing articles and attending events. Be bold – you will probably enjoy it!
Jacquelyn Kimber, Partner, Newby Castleman
Early in my career, I often viewed senior leaders as distant figures, almost superhuman in their capabilities and authority. However, as I progressed, I came to understand that they, too, are human beings with their own strengths, weaknesses and, more often than you’d think, imposter syndrome. Recognising this has allowed me to approach interactions with senior colleagues with greater confidence and empathy, fostering more genuine and productive relationships.
In retrospect, I wish I had started external coaching much earlier in my career. The catalyst for seeking coaching was a personal upheaval – a divorce – which forced me to reevaluate my life and work. However, the benefits of coaching have been profound. It has provided me with invaluable insights, strategies for overcoming challenges, and a supportive sounding board. External coaching has been instrumental in my growth, both personally and professionally, and I believe it can be a game-changer for anyone looking to enhance their leadership capabilities – I wouldn’t be where I am without it!
David Francis, Partner, Grant Thornton
That there is no shame in asking lots of questions. I very much view this as a key part of a tax adviser’s role and I try to impress the point on those starting out in the profession. There are very rarely ‘stupid’ questions – having the courage to speak up if something is unclear very often elicits some crucial piece of information that can unlock a particular issue.
In addition, I have come to appreciate that the most effective tax advisers have an ability to distil a huge amount of analysis and information into the most concise form that is possible. Of course, it’s often the case in our work that there is no easy answer. But I have frequently found that if you can’t explain your conclusions in a paragraph or two, it may be the case that you don’t understand the issues well enough, or there is still work to do to strengthen the argument.
Ben Fryer, Partner, Gibson, Dunn & Crutcher
Never be afraid to quit. If something isn’t working for you, stop doing it and try something else instead.
Paul Rosser, Director, R&D Consulting
I think that tax leaders should make excellent Non-Exec Directors (NEDs), but historically have been largely absent from this community. The age of the digital tax authority means a new strategic approach to data and compliance, and a fight for the resources to deliver it is needed. We need to make the case to our Boards, being commercial and practical, and talking in simpler language about governance and controls.
Adam Eagers, Group Tax Director (Europe), AS Watson
I have been to Iceland 18 times now and contributed to the Lonely Planet guide there. I even corrected the Icelandic Government’s Covid travel guidance which (with a bit of help from Google translate) I had spotted was inconsistent. The amendment was made within 24 hours – if only our Government was as efficient!
And if you don’t like my BKL webinars, you can instead find me as a regular contributor to The ManCity Show podcast. Plenty to talk about at the moment!
Anthony Newgrosh, Partner, BKL
I am very much an accidental tax adviser. After graduating from university with a science degree, I worked through a number of temporary jobs, the last of which involved operating a bottling machine at a large chemical plant. When the site was due to shut down for a month to ‘oil the machines’, I applied for a job in a HMRC call centre. From there, I was accepted onto HMRC’s tax inspector training programme (where incidentally I also met my lovely wife) and remained there for over ten years, before moving into practice with BDO. I guess the lesson is that you can forge a great career from unexpected beginnings.
Jitendra Patel, Tax Principal, BDO
It’s a wild idea but I would make sure the Explanatory Memorandum to the tax legislation explained the purpose of the provisions, instead of paraphrasing their literal meaning. Purposive construction is the norm but the specific purpose is often opaque. We cobble it together from consultation papers, old press releases and Hansard transcripts. I once worked on a case that was decided by looking at the handwritten notes of a Parliamentary draftsperson to confirm why a specific phrase was used. At least some of that revelatory insight needs to be included in the explanatory materials.
Julian Feiner, Head of Tax, DAC Beachcroft
Something we can absolutely do better here in the UK is granting binding certainty to large taxpayers across a much wider range of topics. Rulings and clearances rather fell out of fashion following the controversy over state aid in the EU and ‘sweetheart deals’ here a decade ago. But the result is that it’s practically impossible for a business to get certainty from HMRC on anything other than a few niche areas of (usually new) legislation, bits of the customs code, and transfer pricing.
This has real world impacts. Take incentives like the RDEC, or reliefs like capital allowances. When a company is planning a large capital project it will only model tax benefits in its project appraisal if it can be reasonably sure it will get them. Otherwise it will make prudent assumptions, with any successful claim being a windfall after the event. That’s not good if we want to encourage investment.
It’s time to refresh our ruling and clearance system and give it real breadth and teeth. I’d suggest it covers at least capex reliefs, R&D credits and patent box, permanent establishment status, and loss utilisation. Limit the burden on HMRC with materiality thresholds. This is about tilting the balance for those really large, important decisions that will drive the future of the UK economy.
Tim Sarson, UK Head of Tax Policy, KPMG
The one point I find myself coming back to again and again is the classification of overseas entities for UK tax purposes. The funds I work with are typically raising money from investors globally and investing in a broad range of jurisdictions and so I commonly come across different vehicle types that need to be analysed from a UK tax perspective – often not a straightforward task! It’s an issue I see outside of the funds context too, and it seems that there is always someone in our tax group looking at a version of this question whether it is considering if an entity is transparent or opaque for UK income tax purposes, questions as to treaty eligibility or the ability to benefit from the qualifying private placement exemption, or concerns around an entity breaking a stamp duty group. While the HMRC entity classification list is helpful, I would love to see a more comprehensive system that could provide more certainty in this area.
Laura Underhill, Partner, Clifford Chance
After almost 20 years of trying, I have recently enjoyed some moderate success in explaining section 431 elections and AMV versus UMV without clients’ eyes entirely glazing over. However, as per the now defunct Office of Tax Simplification proposal, it would be much simpler for all concerned if the default position were reversed so that restrictions are automatically disapplied unless the employee elects otherwise. As an alternative, further clarity around the tax treatment of LLP members on the receipt of equity in related vehicles would be welcome. For example, where LLPs are part of a group, it is not unusual for LLP members to hold equity in a parent entity, but the tax rules do not adequately cater for this. The need to consider miscellaneous income/sale of occupational income case-law, the mixed member rules, etc. creates real uncertainty for clients.
Daniel Hawthorne, Partner, Dechert
As founder of the UK Taxpayer Fairness campaign (taxpayerfairness.org), I’m championing the introduction of a Taxpayer Bill of Rights, supported by a Taxpayers Rights Code, backed up by a powerful independent Taxpayer Advocate Service to ensure independent oversight and accountability of the administration of the tax system. The US Congress successfully enacted laws in 1998 imposing procedural fairness rules on their Inland Revenue Service, providing a template for the UK. It would lead to fairer treatment of taxpayers, help to curb any abuses of power, leading to better legislation and a reduction in tax tribunals.
Dave Chaplin, CEO, IR35 Shield
Wired Orthodontics Ltd v HMRC [2024] UKUT 266 (TCC) is a decision on an oral application to the Upper Tribunal (UT) for permission to appeal (PTA). I believe this is the first decision to be published under the UT’s new policy on publication of decisions to refuse permission following an oral renewal hearing. This is a really positive step in allowing all advisers and potential litigants to understand when litigation has come to an end, and also to see the reasoning behind the UT’s PTA decisions.
Laura Poots, Barrister, Pump Court Tax Chambers
The ever-evolving methodology for resolving disputes adopted by HMRC has a big impact on my day-to-day job. The current mechanism can be prohibitively linear (the matter goes from A to B to C), rather than what might be considered a more efficient strategy with A, B and C all reaching a cohesive agreement (as happens in the High-Risk Wealth Programme cohort). The length of time it takes to resolve anything is becoming very protracted.
The Failure to Correct 200% penalties are not helping with some dead lock positions. These penalty levels are giving people a reason to fight which is obstructing settlement. The rationale and driver for these penalties was great in the context of Requirement to Correct but it was perhaps only appropriate in that short time window.
Helen McGhee, Partner, Joseph Hage Aaronson
Basis period reform is causing real problems in practice. This was legislated for in FA 2022, so it isn’t exactly new. However, we’re just now in the process of preparing the first self-assessment returns affected by the transitional rules, and issues continue to come out of the woodwork.
The transitional rules are very complicated, and although the reform is specific to income tax and only affects a relatively small proportion of taxpayers, its tendrils spread quite widely across the tax and benefits system. As a result, it’s rare that a week goes by without some new query coming to me. As and when I get answers to these, I add them to our dedicated FAQs on the ATT website.
Emma Rawson, then Technical Officer (now Director of Public Policy), The ATT
When I was a large business tax inspector, to me tax was about particular arrangements entered into by individual businesses. When I became a policy official in HMRC head office I saw it was really about the design and integrity of legislative regimes. Then, when I moved to the Treasury, I saw it was really about politics – both domestic and between different countries (or blocs of countries) competing to defend their interests. All of those perspectives are useful, but I think it’s hard to overstate how political tax is, and the extent to which that shapes tax policy proposals, including seemingly technical ones.
Bezhan Salehy, Tax Policy Specialist, Macfarlanes
I began computer programming for fun around 1974, using punch cards which were sent to the large computer at Keele University, with the results being received a week later. If you made a programming error, it would take a week to become aware of this, and a further week to correct it. I failed to appreciate at the time that this was a possible career, and instead entered the law.
Stephen Goldstraw, Partner, Penningtons Manches Cooper
How long a career is. Once you’re a partner, you’re a partner for the long haul. I love the variety and responsibility of partnership – but don’t think I looked much beyond the aspirational title at the start of my career. Had I known that I’d probably spend more of my life as a partner than working to be one, I might have been in less of a hurry!
Ceri Stoner, Partner, Wiggin
The careers advice that I would give my earlier self would be to learn how to network in a way that is authentic and to get out and do it. Networking is a key skill as a private client adviser as it is a source of work, a resource to help with client issues and a way broaden your knowledge of the private client world. Early in my career, I avoided anything labelled as a networking event, but I soon learned that there were different ways to network which didn’t always involve being somewhere in the evening with a drink. Social media, such as LinkedIn, is a great way to get yourself out there, and I have really enjoyed building my network that way. Breakfasts, lunches, dinners and coffees with smaller groups of people where you have things in common are also a great way to network.
Jo Bateson, Partner, Mercer & Hole
My advice to all staff (not just trainees) is to grab as many new experiences as possible and get involved in everything, even if it seems daunting, from technical tax problems, to presenting, writing articles and attending events. Be bold – you will probably enjoy it!
Jacquelyn Kimber, Partner, Newby Castleman
Early in my career, I often viewed senior leaders as distant figures, almost superhuman in their capabilities and authority. However, as I progressed, I came to understand that they, too, are human beings with their own strengths, weaknesses and, more often than you’d think, imposter syndrome. Recognising this has allowed me to approach interactions with senior colleagues with greater confidence and empathy, fostering more genuine and productive relationships.
In retrospect, I wish I had started external coaching much earlier in my career. The catalyst for seeking coaching was a personal upheaval – a divorce – which forced me to reevaluate my life and work. However, the benefits of coaching have been profound. It has provided me with invaluable insights, strategies for overcoming challenges, and a supportive sounding board. External coaching has been instrumental in my growth, both personally and professionally, and I believe it can be a game-changer for anyone looking to enhance their leadership capabilities – I wouldn’t be where I am without it!
David Francis, Partner, Grant Thornton
That there is no shame in asking lots of questions. I very much view this as a key part of a tax adviser’s role and I try to impress the point on those starting out in the profession. There are very rarely ‘stupid’ questions – having the courage to speak up if something is unclear very often elicits some crucial piece of information that can unlock a particular issue.
In addition, I have come to appreciate that the most effective tax advisers have an ability to distil a huge amount of analysis and information into the most concise form that is possible. Of course, it’s often the case in our work that there is no easy answer. But I have frequently found that if you can’t explain your conclusions in a paragraph or two, it may be the case that you don’t understand the issues well enough, or there is still work to do to strengthen the argument.
Ben Fryer, Partner, Gibson, Dunn & Crutcher
Never be afraid to quit. If something isn’t working for you, stop doing it and try something else instead.
Paul Rosser, Director, R&D Consulting
I think that tax leaders should make excellent Non-Exec Directors (NEDs), but historically have been largely absent from this community. The age of the digital tax authority means a new strategic approach to data and compliance, and a fight for the resources to deliver it is needed. We need to make the case to our Boards, being commercial and practical, and talking in simpler language about governance and controls.
Adam Eagers, Group Tax Director (Europe), AS Watson
I have been to Iceland 18 times now and contributed to the Lonely Planet guide there. I even corrected the Icelandic Government’s Covid travel guidance which (with a bit of help from Google translate) I had spotted was inconsistent. The amendment was made within 24 hours – if only our Government was as efficient!
And if you don’t like my BKL webinars, you can instead find me as a regular contributor to The ManCity Show podcast. Plenty to talk about at the moment!
Anthony Newgrosh, Partner, BKL
I am very much an accidental tax adviser. After graduating from university with a science degree, I worked through a number of temporary jobs, the last of which involved operating a bottling machine at a large chemical plant. When the site was due to shut down for a month to ‘oil the machines’, I applied for a job in a HMRC call centre. From there, I was accepted onto HMRC’s tax inspector training programme (where incidentally I also met my lovely wife) and remained there for over ten years, before moving into practice with BDO. I guess the lesson is that you can forge a great career from unexpected beginnings.
Jitendra Patel, Tax Principal, BDO
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