Tag: HMRC

Peers urge Hammond to drop proposed 12-year time limits

Proposed 12-year time limits for assessment of tax on offshore income and gains are unnecessarily burdensome and should be withdrawn from the finance bill, peers have told Chancellor of the Exchequer Philip Hammond.

My news story for Worldwide Tax Daily, published by Tax Analysts on November 9 (paywall):

U.K. Peers Urge Hammond to Drop Proposed 12-Year Time Limits

HMRC’s approach to disputes worsens backlog, tax bodies say

HM Revenue & Customs seems eager to litigate rather than accept reasonable arguments in tax disputes, even when the prospects of success are “less than 50 per cent,” according to the Chartered Institute of Taxation. The “unwelcome trend” is adding to a growing backlog of appeals for tax tribunals, the CIOT said in response to the House of Commons Treasury Subcommittee’s inquiry into the conduct of tax investigations and the resolution of tax disputes.

My news story of July 6 for Tax Notes (paywall) is now reproduced in full with permission:

HMRC’s Approach to Disputes Worsens Backlog, Tax Bodies Say (pdf)

As I reported, HMRC officials and CIOT president Ray McCann were scheduled to give evidence to the subcommittee’s inquiry on July 9. The evidence session was postponed following the resignations of Brexit secretary David Davis and foreign secretary Boris Johnson over the July 6 Chequers agreement:

A personal tax roadmap would help address complexity, says OTS

Misunderstandings remain about UK taxation of savings income, but a personal tax roadmap would help address its significant complexities, the Office of Tax Simplification said last month.

A range of tax reliefs to encourage saving works well for most taxpayers, and 95 percent of people pay no tax on savings income, the OTS said. But the interaction between rates and allowances is so complex that HMRC’s self-assessment computer software has sometimes “failed to get it right,” the OTS pointed out in a 50-page report titled Savings Income: Routes to Simplification.

My news story of May 29 for Tax Notes (paywall) is now reproduced in full with permission: U.K. Office of Tax Simplification Calls for Personal Tax Roadmap (pdf).

Old versions of tax law on government website – an update

Last week HM Revenue & Customs apologised for linking to some very old legislation, in a guidance note on new criminal offences, and removed the offending links. HMRC guidance at GOV.UK does not normally include statutory references, but if that is going to change there is a clear risk that the same mistake will be made again.

Legislation.gov.uk is described as “the official place of publication for newly enacted legislation”. Great care is needed in relation to older tax legislation, including some of the major consolidation Acts.

For example, go to Income Tax Act 2007 and you’ll see a prominent warning about an apparently very large number of changes that have not yet been processed. Continue reading “Old versions of tax law on government website – an update”

HMRC guidance points to old tax law

You can find out about criminal offences relating to offshore income and assets in a new guidance note on HMRC’s website. But the guidance points to some very old tax law.

While HMRC guidance for taxpayers published on GOV.UK does not normally include statutory references, this guidance note has six.

At the time of writing, there are links to sections 7 and 8 of the Taxes Management Act 1970 as reproduced at Legislation.gov.uk, the “official place of publication for newly enacted legislation”.


UPDATE 22 March: HMRC has deleted the links to sections 7 and 8 and apologised for the error.


The problem is that while some progress has been made in processing changes enacted in annual finance acts, Legislation.gov.uk still presents the original versions of some of the key consolidation acts. The original TMA 1970, which turned 48 last week, is here. Continue reading “HMRC guidance points to old tax law”

Designing good compliance into the tax system

HM Revenue & Customs estimates the total UK tax gap, the difference between the tax collected and the amount that should be collected “in theory”, at £34bn. Just £1.7bn relates to avoidance (excluding international tax planning strategies such as profit shifting, which are being addressed slowly but multilaterally), and £6bn relates to interpretation of the law.

In contrast, criminal attacks account for around £5bn and evasion another £5bn, while £3.5bn is attributed to the “hidden economy”.

Read more: My article for AAT Comment, 12 January