The CIOT has written to all of the UK major political parties outlining the following seven tax administration points to be addressed by an incoming government.
Resourcing HMRC to provide the level of service taxpayers need: noting that ‘a properly funded and efficient HMRC is vital to the success of the UK economy’ (economic growth being a key theme for the general election campaign). The CIOT urges the shift to digital, self-serve options to be ‘a natural one, driven by the desire to use digital services because they are better than their analogue alternatives, rather than being forced into a digital system that, currently, does not provide the services, support and reassurance that people need.’
Review tax digitalisation to focus it on the needs of taxpayers: successful transition to a digitalised tax system should reduce the administrative burden, accommodate agents from the start and recognise the central role played by agents in the operation of the tax system. The system ‘should be simple, thoroughly tested and co-created with users and developers. It must offer a viable alternative to those who cannot interact digitally’, says the CIOT. As part of these principles, Making Tax Digital for Income Tax Self-Assessment should be reviewed, with close attention paid to the testing phase which began in April 2024.
Commit to meaningful simplification of the tax system: outlining changes to the tax policy process to embed simplification, in line with the nine steps the CIOT had previously put forward to the then Financial Secretary to the Treasury back in April 2023.
Get research and development tax credits working properly: again noting the importance of R&D to economic growth, the CIOT recaps its concerns around HMRC’s handling of claims (e.g. valid claims being rejected, inadequate training of caseworkers) and that ‘more needs to be done to ensure that the relief achieves its purpose of supporting innovation’.
Effective but proportionate action to tackle rogue tax agents:consultation on regulating the tax advice market closed on 29 May, but many of the issues covered will require further, more detailed consideration, particularly around the role of a professional body as regulator and the scope of regulation.
Greater transparency and accountability over policy costings: the CIOT raises concern around policy cost estimates which are typically included in the tax information and impact notes published alongside tax policy change announcements, some of which the institute says are ‘quite simply incredible’. The essence of the point here (which the CIOT illustrates using the example of the additional data requirement for employers to report employee hours via RTI) is that policy decisions should be taken on the basis of reliable cost data.
Adherence to sound tax policy making principles: this is a recap of previous recommendations by the CIOT and others to improve the development of tax policy.
The CIOT has written to all of the UK major political parties outlining the following seven tax administration points to be addressed by an incoming government.
Resourcing HMRC to provide the level of service taxpayers need: noting that ‘a properly funded and efficient HMRC is vital to the success of the UK economy’ (economic growth being a key theme for the general election campaign). The CIOT urges the shift to digital, self-serve options to be ‘a natural one, driven by the desire to use digital services because they are better than their analogue alternatives, rather than being forced into a digital system that, currently, does not provide the services, support and reassurance that people need.’
Review tax digitalisation to focus it on the needs of taxpayers: successful transition to a digitalised tax system should reduce the administrative burden, accommodate agents from the start and recognise the central role played by agents in the operation of the tax system. The system ‘should be simple, thoroughly tested and co-created with users and developers. It must offer a viable alternative to those who cannot interact digitally’, says the CIOT. As part of these principles, Making Tax Digital for Income Tax Self-Assessment should be reviewed, with close attention paid to the testing phase which began in April 2024.
Commit to meaningful simplification of the tax system: outlining changes to the tax policy process to embed simplification, in line with the nine steps the CIOT had previously put forward to the then Financial Secretary to the Treasury back in April 2023.
Get research and development tax credits working properly: again noting the importance of R&D to economic growth, the CIOT recaps its concerns around HMRC’s handling of claims (e.g. valid claims being rejected, inadequate training of caseworkers) and that ‘more needs to be done to ensure that the relief achieves its purpose of supporting innovation’.
Effective but proportionate action to tackle rogue tax agents:consultation on regulating the tax advice market closed on 29 May, but many of the issues covered will require further, more detailed consideration, particularly around the role of a professional body as regulator and the scope of regulation.
Greater transparency and accountability over policy costings: the CIOT raises concern around policy cost estimates which are typically included in the tax information and impact notes published alongside tax policy change announcements, some of which the institute says are ‘quite simply incredible’. The essence of the point here (which the CIOT illustrates using the example of the additional data requirement for employers to report employee hours via RTI) is that policy decisions should be taken on the basis of reliable cost data.
Adherence to sound tax policy making principles: this is a recap of previous recommendations by the CIOT and others to improve the development of tax policy.
