`The Chartered Institute of Payroll Professionals
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The tax gap refers to the difference between the amount of tax that should have been paid to HMRC, compared to what’s actually been paid.
Although the percentage tax gap remains unchanged from last year, the actual monetary value has changed, from £34 billion in 2019/20, to £32 billion in 2020/21, marking a fall of £2 billion. Tax due fell from £672 billion in 2019/20 to £635 billion in 2020/21 because of the economic effects of Covid-19.
HMRC estimates the tax gap for both direct and indirect taxes on an annual basis. It uses the latest information available but may amend tax gaps from previous years as more data becomes available.
More detailed analysis of the tax gap can be located here.
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HMRC open a new consultation on raising standards in tax advice Published: 24 June 2022 Emailed: 29 June 2022
Her Majesty’s Revenue and Customs (HMRC) has opened a further consultation looking at the use of repayment agents for tax repayments. These agents reclaim tax refunds on behalf of taxpayers but often with fees attached for the service.
HMRC has identified issues in this area, such as:
• the use of assignments, which legally transfer the benefit of the taxpayer’s repayments to the agent • taxpayers not being made aware of or fully understand the terms and conditions to which they are agreeing • taxpayers being unaware that they are dealing with a third party and not HMRC.
HMRC are therefore looking for views on the following proposed remedies:
restrict the use of assignments
•
• introduce measures designed to ensure taxpayers see material information about a repayment agent’s service before entering into a contractual agreement • require repayment agents to formally register with HMRC.
The CIPP plan to respond to this consultation, which closes on 14 September 2022. We encourage any input to this consultation, if you have any comments or thoughts to add please email Policy@cipp.org.uk.
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New terms and conditions for HMRC Online Services Published: 29 June 2022 Emailed: 29 June 2022
Her Majesty’s Revenue and Customs (HMRC) has updated the terms and conditions to Online Services.
The updated terms and conditions stress the importance of security around user IDs and passwords, and reiterates that:
“You must never share them with anyone else, including your tax agent, accountant or representative.”
Please ensure that you familiarise yourself with the changes here.
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Setting up multiple PAYE schemes: Election process in 2022-23
cipp.org.uk
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