The Chancellor has already confirmed that the Business Tax Roadmap is to be included in the 30 October 2024 Budget. Welcoming that commitment, the CIOT highlights points of key importance for business and the tax profession:
The overwhelming feedback from business and members is that stability, predictability and certainty are more important than any particular rate of tax or tax relief. Greater availability of clearances and rulings would be welcome if, as expected, they are included in the Government’s proposals. Better guidance and adequately resourced HMRC customer service, together with properly targeted compliance activity, would also promote trust in the tax system and facilitate (rather than hamper) business activity.
The roadmap is an opportunity to set out the Government’s strategic direction for the tax system, particularly around reducing compliance cost and administrative burden, committing to simplification and increasing digitalisation for the benefit of both HMRC and the taxpayer.
HMRC service levels and digitalisation have, however, inhibited rather than promoted business activity. The CIOT urges the Government to review its ‘digital ambitions around tax administration’, suggesting that any projects which do not meet agreed principles should be paused and reconsidered.
Several points are covered in a ‘creating growth everywhere’ section, including clarity around investment reliefs (e.g. capital allowances, including full expensing). Simplification and consistency are again key – but the paper also highlights the potential interaction with the Government’s plans around employment law and supporting people back into work, with the potential to use the tax system accordingly.
The Chancellor has already confirmed that the Business Tax Roadmap is to be included in the 30 October 2024 Budget. Welcoming that commitment, the CIOT highlights points of key importance for business and the tax profession:
The overwhelming feedback from business and members is that stability, predictability and certainty are more important than any particular rate of tax or tax relief. Greater availability of clearances and rulings would be welcome if, as expected, they are included in the Government’s proposals. Better guidance and adequately resourced HMRC customer service, together with properly targeted compliance activity, would also promote trust in the tax system and facilitate (rather than hamper) business activity.
The roadmap is an opportunity to set out the Government’s strategic direction for the tax system, particularly around reducing compliance cost and administrative burden, committing to simplification and increasing digitalisation for the benefit of both HMRC and the taxpayer.
HMRC service levels and digitalisation have, however, inhibited rather than promoted business activity. The CIOT urges the Government to review its ‘digital ambitions around tax administration’, suggesting that any projects which do not meet agreed principles should be paused and reconsidered.
Several points are covered in a ‘creating growth everywhere’ section, including clarity around investment reliefs (e.g. capital allowances, including full expensing). Simplification and consistency are again key – but the paper also highlights the potential interaction with the Government’s plans around employment law and supporting people back into work, with the potential to use the tax system accordingly.
