This report highlights some of the Tax Faculty’s activities since the last report (at 1 March 2017) and what we are working on at the moment.
Our feet have barely touched the ground since the last activity report. Since 1 March we have been working on the Spring Budget 2017 (and the subsequent changes to the measures announced) and the longest ever Finance Bill 2017 which was published on 20 March 2017 alongside a number of new consultation documents. There has been a hectic level of activity on issues such as Making Tax Digital (MTD) and the changes to the domicile rules, optional remuneration (salary sacrifice), IR35 in the public sector and the reviews into different ways of working. The next big event is the 2017 Tax Faculty conference – details below.
2. Significant meetings and other activity
Ian Young chaired a meeting of the GAA Tax Director Group in Sydney, Australia from 28 to 30 March. A full report will appear in the May edition of TAXline.
Ian Young spoke on Human Rights and the role of Taxpayer’s Charters at the Second International Conference on Taxpayer Rights in Vienna on 13-14 March.
Ian Young attended his final meeting of the HMRC Charter Committee on 21 March.
Anita Monteith spoke at the Bed, Bucks and Herts Practice of the Future conference on 21 March 2017. Caroline Miskin spoke to three groups of members in the North West (Preston, Liverpool and Stockport) on 29 March. The topic was MTD and how members in practice will adapt to these changes.
On 27 March 2017 the Tax Faculty hosted a roundtable discussion on employment status and different ways of working, with practitioners and HM Treasury staff.
Sue Moore attended a meeting with HMRC to discuss the proposed regulations regarding a trust register intended to comply with the 4th Anti Money Laundering Directive.
As part of programme of outreach to universities and tax academia during March Peter Allen gave a two-hour presentation on UK death taxes and trusts at Bournemouth University and on Brexit to the University of Tennessee (regrettably for Peter this was in London not Nashville).
3. Media and other public appearances
Anita took part in a viewers’ questions panel on BBC News24 in the evening on Budget Day.
Sarah Ghaffari made her debut radio appearance discussing the proposed increase to Class 4 National Insurance Contribution rates at a very early hour the morning after the Budget, on Radio 5 Live.
Sue Moore joined the Budget panel at the offices of the Financial Times to contribute to the Budget blog published by the Financial Adviser.
Anita Monteith appeared on BBC Moneybox on Saturday 8 April, talking about MTD.
4. News from the technical committees
The Practitioner Tax Committee met on 1 March 2017 and were joined by Sally Munnings and Deborah Vialls from HMRC’s agent engagement team. The focus of the discussion was the future of Working Together and the HMRC agent forum, and ways that issues can be raised with HMRC and MTD.
SME business tax
We have published TAXguide 09/17 FRS 102: loans at non-market rates, which was written by Sarah Ghaffari and volunteers from the SME Business Tax Committee. This TAXguide considers the tax implications of loans made to companies at non-market rates of interest following changes introduced to the accounting treatment.
Making Tax Digital
The Tax Faculty ran the second in our series of webinars on 22 March 2017. The MTD hub www.icaew.com/mtd was further developed with the addition of Q&As which members have raised during webinars and directly. A factsheet for agents to send their clients and an HMRC presentation which gives a first look at some of the MTD agent registration screens have also been posted. Anita Monteith and Caroline Miskin spoke to groups of members as highlighted above.
The IT Faculty has assembled a Software Advisory Group to include representatives of software providers, practitioners and ICAEW staff; Anita Monteith and Caroline Miskin attended the meeting to launch the group on 5 April 2017.
There has been a lot of contact with HMRC as the Tax Faculty seeks to clarify the very many areas of uncertainty around the details of MTD – the Finance Bill clauses are available but the associated regulations are not now expected until the summer. Caroline Miskin attended a meeting of the HMRC Assisted Digital Working Group
Peter Bickley attended a meeting of the Reward & Employment Engagement Forum, a cross-body group of tax-interested professional bodies, payroll consultants and software houses, at which the guests were HMRC’s MTD for Individuals team. The discussions focused on how inaccuracies in HMRC’s processing of PAYE RTI data and PAYE remittances will impact on personal tax accounts, and the need to educate PAYE taxpayers to use their personal tax accounts to get their tax right – which will necessitate a radical culture change for employees.
In March TAXline Lindsey Wicks provided a summary of the tax changes coming into force
In April 2017; Anita Monteith continued her examination of taxation and the gig economy; and Robert Lillycrop explained how to appeal business rates increases as a result of the new property valuation list.
The Tax Faculty is updating its TAXguides and has issued nine since the start of 2017. This includes an updated version of Useful HMRC Contact Information (formerly TAXtools 1).
Tax Faculty Webinars and TAXtalk
In a TAXtalk Budget Special on 10 March 2017 Anita Monteith was joined by Jane Moore, Editor of TAXline, and Sue Moore, Technical Manager of our Private Client Committee, in a discussion of the content of the Budget.
The second in the series of Demystifying MTD webinars was on 22 March 2017; the presenters Anita Monteith and Sarah Ghaffari were joined by Paul Aplin.
The next Tax Faculty webinar is at 11:00 on Tuesday 2 May 2017 and is the third in our Demystifying MTD series.
All our webinars are listed on our Events page. Remember, our webinars – including past recordings – are free for Tax Faculty members. You don’t need to be a member of ICAEW to join, so why not join the Tax Faculty now?
Tax Club for young professionals (aged 35 or under) met on 7 March 2017 when Angus Farr spoke on the topic: Getting Political: How to manage office politics.
On 3 April 2017 Sharon Cooke explained the tax implications of FRS 102 including the impact on intangible fixed assets and non-market rate loans.
Tax Faculty Conference
The theme for the 2017 conference is: Challenges facing your tax practice today and tomorrow. The London date is 21 April 2017 and the Manchester date is 10 May 2017. For more information and to book, go to Tax Faculty Conference 2017
7. Representations and Consultations
Tax representations submitted
The following formal representations were submitted in March:
ICAEW REP 30/17 Review of employment practices in the modern economy – Taylor review
Consultations on which responses are being developed by committee volunteers and faculty technical managers are as listed below. We would welcome your comments well before the issuing body’s deadline so we have time to consider them:
VAT: administrative cooperation in fighting fraud
31 May 2017
Non-resident companies: corporation tax
9 June 2017
VAT fraud: labour provision – construction
Making tax digital: late filing and payment sanctions
11 June 2017
12 June 2017
VAT collection: goods sold online split payments
30 June 2017