One minute with Amanda Tickel, Deloitte UK's head of tax and trade policy.
What’s keeping you busy at work?
I was recently appointed as the head of tax and trade policy at Deloitte, leading a team of tax and trade technical experts and making sure our practice has the latest policy, case law and practical developments.
2021 is proving to be a year of massive change, from managing new VAT and customs rules, applying the new UK/EU Trade and Corporation Agreement (TCA), tracking trade announcements, contributing to the OECD-led debate on taxing digital services and, of course, assessing covid-19 support measures like the CJRS.
This year’s Budget included significant tax measures such as the super-deduction and the rise in corporation tax to 25% from 2023, so we’re analysing the impact of these measures on our clients.
Following Tax Day in March, we’re also working on responses to over 30 consultations and calls for evidence to help shape future tax policy in areas including R&D and the administration of the tax system. We’re also looking ahead at emerging policy areas and thinking about how tax levers could be used to help achieve net zero in the near future.
If you could make one change to a tax law or practice, what would it be?
A much-discussed subject, and one I think would make a lot of sense to change, is the UK tax year end. The current 5 April date feels somewhat out of step. Aligning the year and month ends with calendar months would help to project a modern and efficient system.
More fundamentally, it causes difficulties for individual taxpayers with international reporting obligations given the mismatch between the UK year end and that of their home or host country. For every treaty residence claim or foreign tax credit claim, a UK resident taxpayer is likely to require certificates and/or other information for two tax years in the other country concerned, rather than the one that would be needed if tax year ends coincided. Many expatriate employees coming to the UK for the first time find the current system even more eccentric than driving on the left side of the road.
Making this change would simplify reporting between the UK and a number of other countries governments, so could save a lot of work for HMRC in the long run.
What do you know now that you wish you’d known at the start of your career?
Choose a career in something you’re passionate about. I was about to train as a barrister and realised at the last moment it wasn’t the career for me, so I applied for a training contract at Arthur Andersen in tax and got it. It was a scary decision at the time as I was on a predetermined course, but my choice worked out. I’ve never looked back and love working in tax: it’s such a fascinating and intellectually stimulating subject that touches everyone’s lives.
Are there any new rules that are causing a particular problem?
Post-Brexit, the customs and VAT rules are proving pretty complex to manage and we are starting to see clients review their existing logistics and supply chain models as a result.
Many UK businesses previously only traded with EU firms, so now need to understand and deal with rules around imports and exports, including much more detailed border declarations to retain tariff free trade. UK businesses are now unable to use a number of VAT simplifications that apply to EU businesses trading in other EU member states. At the same time, new VAT rules on cross-border e-commerce came into force in the UK on 1 January 2021, and similar rules will apply from 1 July in the EU. Businesses trading in or with Northern Ireland need to understand the rules under the NI Protocol – which are evolving.
There are many pieces of guidance out there from HMRC and on the gov.uk website to help businesses navigate the rules, but a lot of analysis is still required from those inside the businesses affected.
What should we be looking out for later this year?
We’re expecting to see another full Budget nearer the end of 2021, rather than a Statement. It depends on the strength of UK economic growth, but with borrowing reported to be at £303.1bn in the year ending in March, we may see further tax measures introduced to raise revenue. We should also expect a number of decisions following the wide-ranging consultations announced back in March.
At the upcoming G7 meeting, we’ll be looking out for commentary on the latest OECD proposals now that the US has put a revised proposal forward, including whether a global minimum tax rate could be agreed at least amongst the G7. I expect there will be a lot more policy discussion around the role of environmental taxes in the months ahead, particularly with the UK hosting COP26 in November.
In addition, the business rates debate rumbles on, and we have now moved into a fundamental review stage. On all of these, we hope to see concrete proposals by summer and could see new legislation as soon as Autumn this year, so there is a lot for businesses to keep an eye on in the coming months.
Finally, you might not know this about me but...
I’m at my happiest outdoors spending time with horses. They have really been my solace during the lockdown periods. I taught all four of my kids to ride on the same pony, Alfie, who we’ve owned for many years. They’re now all grown up, but he continues to teach my friend’s and neighbour’s kids – and at 28, Alfie’s still going strong!
One minute with Amanda Tickel, Deloitte UK's head of tax and trade policy.
What’s keeping you busy at work?
I was recently appointed as the head of tax and trade policy at Deloitte, leading a team of tax and trade technical experts and making sure our practice has the latest policy, case law and practical developments.
2021 is proving to be a year of massive change, from managing new VAT and customs rules, applying the new UK/EU Trade and Corporation Agreement (TCA), tracking trade announcements, contributing to the OECD-led debate on taxing digital services and, of course, assessing covid-19 support measures like the CJRS.
This year’s Budget included significant tax measures such as the super-deduction and the rise in corporation tax to 25% from 2023, so we’re analysing the impact of these measures on our clients.
Following Tax Day in March, we’re also working on responses to over 30 consultations and calls for evidence to help shape future tax policy in areas including R&D and the administration of the tax system. We’re also looking ahead at emerging policy areas and thinking about how tax levers could be used to help achieve net zero in the near future.
If you could make one change to a tax law or practice, what would it be?
A much-discussed subject, and one I think would make a lot of sense to change, is the UK tax year end. The current 5 April date feels somewhat out of step. Aligning the year and month ends with calendar months would help to project a modern and efficient system.
More fundamentally, it causes difficulties for individual taxpayers with international reporting obligations given the mismatch between the UK year end and that of their home or host country. For every treaty residence claim or foreign tax credit claim, a UK resident taxpayer is likely to require certificates and/or other information for two tax years in the other country concerned, rather than the one that would be needed if tax year ends coincided. Many expatriate employees coming to the UK for the first time find the current system even more eccentric than driving on the left side of the road.
Making this change would simplify reporting between the UK and a number of other countries governments, so could save a lot of work for HMRC in the long run.
What do you know now that you wish you’d known at the start of your career?
Choose a career in something you’re passionate about. I was about to train as a barrister and realised at the last moment it wasn’t the career for me, so I applied for a training contract at Arthur Andersen in tax and got it. It was a scary decision at the time as I was on a predetermined course, but my choice worked out. I’ve never looked back and love working in tax: it’s such a fascinating and intellectually stimulating subject that touches everyone’s lives.
Are there any new rules that are causing a particular problem?
Post-Brexit, the customs and VAT rules are proving pretty complex to manage and we are starting to see clients review their existing logistics and supply chain models as a result.
Many UK businesses previously only traded with EU firms, so now need to understand and deal with rules around imports and exports, including much more detailed border declarations to retain tariff free trade. UK businesses are now unable to use a number of VAT simplifications that apply to EU businesses trading in other EU member states. At the same time, new VAT rules on cross-border e-commerce came into force in the UK on 1 January 2021, and similar rules will apply from 1 July in the EU. Businesses trading in or with Northern Ireland need to understand the rules under the NI Protocol – which are evolving.
There are many pieces of guidance out there from HMRC and on the gov.uk website to help businesses navigate the rules, but a lot of analysis is still required from those inside the businesses affected.
What should we be looking out for later this year?
We’re expecting to see another full Budget nearer the end of 2021, rather than a Statement. It depends on the strength of UK economic growth, but with borrowing reported to be at £303.1bn in the year ending in March, we may see further tax measures introduced to raise revenue. We should also expect a number of decisions following the wide-ranging consultations announced back in March.
At the upcoming G7 meeting, we’ll be looking out for commentary on the latest OECD proposals now that the US has put a revised proposal forward, including whether a global minimum tax rate could be agreed at least amongst the G7. I expect there will be a lot more policy discussion around the role of environmental taxes in the months ahead, particularly with the UK hosting COP26 in November.
In addition, the business rates debate rumbles on, and we have now moved into a fundamental review stage. On all of these, we hope to see concrete proposals by summer and could see new legislation as soon as Autumn this year, so there is a lot for businesses to keep an eye on in the coming months.
Finally, you might not know this about me but...
I’m at my happiest outdoors spending time with horses. They have really been my solace during the lockdown periods. I taught all four of my kids to ride on the same pony, Alfie, who we’ve owned for many years. They’re now all grown up, but he continues to teach my friend’s and neighbour’s kids – and at 28, Alfie’s still going strong!
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