Charge, the introduction of the study of PAYE within education systems and the clarity of explanatory notes that are provided to workers alongside their tax code notification letters.
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Government response to ‘Disputing Tax’ report issued by Treasury Sub - Committee 16 October 2019 The government has responded to the report that the Treasury’s Sub-Committee (TSC) released that offered 13 recommendations concerning how HMRC handles and solves tax disputes. These proposals are surmised below, along with the relevant response on the matter from the government. HMRC has either accepted or partially accepted each point which demonstrates how important consultations relating to policy are: • 1.) Recommendation: HMRC should write to the Treasury Committee with an overview of the figures and nature of those involved with tax avoidance schemes, on an annual basis. Response: Partially accepted. HMRC will publish further statistics and information relating to tax avoidance in a pledge to increase transparency on a yearly basis. • 2.) Recommendation: HMRC should survey response times for providing settlement terms under the Contractor Loan Settlement Opportunity (CLSO) and report back on progress. Response: Partially accepted. HMRC accepts that there have been delays in providing terms under the CLSO and did distribute additional resource to cope with the high response rates, meaning that 99% of affected individuals received their settlement figures by 31 August 2019. It has confirmed that nobody will be penalised due to any delays that have been caused by HMRC. • 3.) Recommendation: HMRC should provide figures relating to the CLSO, how many people took it up and what the terms were, and the amount of tax and other duties applied. Response: Accepted and figures were provided as follows – - Approximately 50,000 taxpayers are affected by the loan charge. - More than 28,000 scheme users were interested in tackling their tax affairs. - Between 2016 & 2019, approximately 8,000 settlements have been agreed, equating to roughly £2 billion. - There isn’t enough data to provide a figure for how many users of disguised remuneration did not settle. • 4.) Recommendation: The government should report on how many individuals would not be pursued for participation in a loan-based scheme that had been fully disclosed for a ‘closed tax year’. The amount of money being written-off should also be provided. Response: Accepted and the information will ne provided on HMRC’s 2019-20 annual report. • 5.) Recommendation: HMRC should work alongside professional bodies to ensure standards relating to conduct are transparent where advice on tax avoidance is being provided. Response: Accepted – HMRC is actively working on methods to raise standards in the paid tax agent market, with emphasis on those who do not belong to any of the professional bodies bound by the Professional Conduct in Relation to Taxation (PCRT). The seven PCRT-owning bodies will review the PCRT, alongside HMRC in Autumn 2019. • 6.) Recommendation: HMRC should devise a strategy for firms and advisers that actively encourages tax avoidance schemes. Response: Accepted. Resources were doubled in this field for 2019-20. A refined strategy should be finalised by 31 March 2020 which will be published in due course. • 7.) Recommendation: HMRC should justify the usage of bulk data such as the Common Reporting Standard (CRS). The recommendation is for the compilation of an annual report that demonstrates the issue of offshore non-compliance, identifying risks and how they will be addressed. Response: Partially accepted. HMRC will publish data on the CRS in its annual report. There are already publications surrounding tax compliance, for example ‘Measuring tax gaps’. HMRC can’t publish all information due to international treaties which demand confidentiality.
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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