Tax Day 2: Consultation round-up

30 November 2021

With the second instalment of ‘Tax Day’ this year, here is a round-up of the consultations, calls for evidence and various responses released today that may interest you as a payroll professional.

New consultations

Consultation on enabling investment in productive finance

Looks at pension charge cap changes that could allow investment in growing sectors such as green projects

Business Rates Review: technical consultation

Following on from some of the announcements in the autumn Budget, the government is seeking views on how to enable more frequent valuations, improve reliefs available and how to support green investment

Teachers’ pension scheme: proposed changes to scheme regulations

Following the McCloud judgement, public sector pension reforms made in 2015 were deemed unlawful due to age discrimination. The government is conducting this consultation to look at the transition whereby all members will be in the same scheme from April 2022. A further consultation will look at the remedies required for the period 1 April 2015 to 31 March 2022

 

Calls for evidence

Umbrella company market

HM Treasury is seeking evidence on umbrella companies and how they interact with the tax and employment rights systems. Concerns raised with regards to compliance and protections for workers prompted this call for evidence

Income Tax Self Assessment registration for the self-employed and landlords

This call for evidence looks to explore if bringing forward the registration for self-assessment would make individuals more aware of their tax obligations. With a government focus on making tax easy to understand and get right, will this help those who need to pay their tax through self-assessment?

Modernising tax debt collection from non-paying businesses

While most businesses pay tax correctly and at the right time, some hold off until enforcement action is needed. Her Majesty’s Revenue and Customs (HMRC) is asking for input on how it can better utilise enforcement in a way that fits with the modern tax system

 

Consultation and call for evidence responses

Raising standards in the tax advice market

The government has decided not to implement Professional Indemnity Insurance (PII) requirements for tax advisers. A further consultation will be undertaken to determine a legislative definition of tax advice. We once again face the question, will payroll professionals be classed as tax advisers?

The tax administration framework: supporting a 21st century tax system

In this response, the government has identified the need for the tax administration framework to be more transparent, provide greater clarity and to support digital reform. The additional steps that will be taken to ensure the concerns raised by stakeholders are addressed are discussed

It is also confirmed here that the government currently has no plans to explore the changing of the tax year end date, citing that this would be a huge undertaking for businesses and government

Timely Payment

The government confirms it does not plan to chance the timings of tax payments for individuals, so self-assessment dates will remain the same. It will continue to explore how to bring the payment schedules closer to the periods they relate to

 

HM Treasury has also released its 2021 review of the Office of Tax Simplification. This lays out some recommendations that will impact the way the office conducts reviews over the next five years.

The CIPP will be diving further into some of these consultations and responses, so keep an eye out for further updates.


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