The Lords Economic Affairs Finance Bill Sub-Committee, reporting on the draft Finance Bill 2016, has recommended that HMRC informs taxpayers ‘urgently’ about changes involving the new personal savings allowance and dividend allowance, which come into effect shortly and involve abolition of the tax deduction scheme for interest. This is confusing for taxpayers in the ‘absence of any roadmap’. Whilst bringing simplification for most, the changes ‘will lead to unfortunate results such as high marginal rates for those on the edges of tax bands’.
The committee also called for more publicity on plans for simple assessment and on the impact of the move to digital tax accounts.
HMRC’s commitment to consultation as part of its ‘new approach’ to tax policy making is not being carried out consistently. Overall, HMRC’s current communications strategy is ‘inadequate’. See http://bit.ly/1La1G4Z.
The Lords Economic Affairs Finance Bill Sub-Committee, reporting on the draft Finance Bill 2016, has recommended that HMRC informs taxpayers ‘urgently’ about changes involving the new personal savings allowance and dividend allowance, which come into effect shortly and involve abolition of the tax deduction scheme for interest. This is confusing for taxpayers in the ‘absence of any roadmap’. Whilst bringing simplification for most, the changes ‘will lead to unfortunate results such as high marginal rates for those on the edges of tax bands’.
The committee also called for more publicity on plans for simple assessment and on the impact of the move to digital tax accounts.
HMRC’s commitment to consultation as part of its ‘new approach’ to tax policy making is not being carried out consistently. Overall, HMRC’s current communications strategy is ‘inadequate’. See http://bit.ly/1La1G4Z.
