This report highlights some of the Tax Faculty’s activities since the last report published in October 2017, and what we are working on at the moment.
Tax Faculty activity has been driven by the Autumn Budget 2017 on 22 November 2017 and by legislation: Finance (No. 2) Act 2017 received royal assent on 16 November 2017 and was closely followed by the publication of Finance Bill 2017-18 on 1 December 2017 alongside a number of new consultation documents which are listed below.
The annual Hardman lecture on Tuesday 14 November 2017 was given by Mary Monfries, on the theme of “The vital role of the profession in building a world of strong economies”.
2. Significant meetings and other activity in the period
On 16 October Frank Haskew and Anita Monteith met Beth Russell, Director General Tax and Welfare, HM Treasury, to discuss the new tax policy making timetable and areas of current concern.
On 26 October Anita visited a member in Shepton Mallet to observe the filing of quarterly updates by an ICAEW member who is in the MTDb pilot for several of his business clients.
On 27 October Ian Young and Anita Monteith met the Guangxi Local Taxation Bureau. Ian Young also met a delegation from the Philippines’ government and parliament to advise them on Taxpayer Charters.
On 30 October Anita Monteith met Mel Stride with the Tax Professionals Forum, to discuss the new Budget and legislative timetable and its impact on the tax policy making process.
On 16 November Anita Monteith attended the Cyber Aware Industry Forum.
On 20 November Sarah Ghaffari attended the All Party Parliamentary Group (Responsible Tax) chaired by Dame Margaret Hodge on the topic of the gig economy. Ian Young attended meetings of the same group on 6 November (What is responsible tax and why is it important?), 7 November (on the Paradise papers) and 23 November (on Brexit).
On 29 November Frank Haskew, Anita Monteith and Paul Aplin met Mel Stride, the Financial Secretary to the Treasury and discussed a number of current topics including the Trust Registration Service and Making Tax Digital.
On 4 December Anita Monteith participated in a round table discussion on the Gig Economy hosted by PWC. Topics covered included the impact of the growth of the sector and A Framework for modern employment, Second Report of the Work and Pensions Committee and First Report of the Business, Energy and Industrial Strategy Committee.
On 5 December Frank Haskew gave evidence to the Treasury Committee on the November 2017 Budget and related topics, including extending IR35 to the public sector, the SDLT exemption for first-time buyers, the freezing of the VAT threshold and proposals to counter online VAT fraud.
On 5 December Anita Monteith attended the Future of Work for All Labour Party conference at which the Labour party’s response to the Taylor report was discussed, together with the party’s proposals to improve the quality and availability work in the UK.
On 5 December Frank Haskew and Anita Monteith attended a roundtable event in the Houses of Parliament on the implications of Brexit on Customs and Duties.
On 11 December Frank Haskew attended a meeting of HMRC’s Tax and Accounting Group, which discussed the tax implications of various developments in IFRSs.
On 11 December Paul Aplin, Carl Bayley, Mary Monfries and Frank Haskew attended a CIOT roundtable meeting with Edward Troup at the CIOT.
On 13 December, Frank Haskew and Caroline Miskin attended a meeting with HMRC to discuss its tax agent strategy including the roll-out of digital services for agents.
3. Media and other public appearances
Anita Monteith appeared on Moneybox Live on Budget day.
Caroline Miskin appeared on You and Yours on 12 October 2017 to discuss simple assessment. Caroline also spoke to the South West London Chartered Accountants tax group on 8 November 2017 on this topic.
Sue Moore did various interviews at FT Advisor on Budget Day and contributed to their Budget Day blog.
Anita Monteith was quoted in the Daily Telegraph in a front page story on the HMRC consultation on tax self assessment fines. She was also quoted in the Mail Online on HMRC on the same topic, and in the Sunday Times and Times Online on the changes to the rent-a room relief.
4. News from the technical committees
The Practitioner Tax Committee met on 29 November 2017 and discussed current issues affecting practitioners, including P800s and simple assessment, and the roll out of agent services, in particular agent access to the Trust Registration Service and the new agent services account.
Frank Haskew and Caroline Miskin represented ICAEW at the Joint Initiative Steering Group on Monday 30 October 2017 and ICAEW hosted the Issues Overview Group on 12 December 2017.Making Tax Digital
The Tax Faculty submitted comments on the draft regulations for income tax and on the overview of the regulations for VAT. We are still awaiting the draft VAT regulations.
There have been a number of meetings with HMRC including on communication plans and a meeting of the Joint VAT Consultative Committee sub-group on MTD for VAT. The webinar programme resumed with a webinar on MTDb on 8 November and one MTDi on 14 November 2017.
SME business tax
Sarah Ghaffari attended the IR35 Forum on 11 December 2017. The SME business tax committee met on 18 December 2017 to consider Finance Bill 2017/18 clauses and various consultations published in early December.Private Client Committee
The committee has been working on the non-dom changes in the various Finance Bills and also on arguing, successfully, for deadline extensions and further clarifications on what is required in connection with the Trust Registration Service.
We met the OTS in relation to their review of IHT and how it can be simplified.
We attended the HMRC-run Expat Forum on 20 November and the Capital Taxes Liaison Forum on 8 December.Enquiries and Appeals Committee
The committee met on 13 December and considered the current consultations on the Hidden Economy and on MTD compliance, the Budget proposals to extend the assessment time limits for offshore non-compliance, and HMRC’s current compliance activities including ‘nudge letters’.
We attended the Compliance Reform Forum in November and a meeting with HMRC on 14 December to discuss the EU and OECD proposal for mandatory disclosure of information.5. Publications
TAXline: November 2017In this issue of TAXline, Robin Williamson outlines what personal representatives need to know when it comes to income tax and capital gains on estates; Ian Young examines the effect of human rights charters on taxpayers’ rights at home and abroad; Lynnette Bober explains the new rebasing relief available to foreign domiciliaries and John Cassidy assesses HMRC’s latest nudge letters.
TAXline: December 2017In this month’s editorial, Frank Haskew looked back at the past year and identified the crucial developments in tax. There is a report of the Hardman Lecture, and articles about the changes affecting non-doms, MTD agent filing, and the work of the OTS. Plus a Christmas appeal for support for the work of the tax advice charities from the Bridge the Gap campaign.TAXguides
The following TAXguides have been published since the last report:
TAXguide 23/17: VAT MOSSTAXguide 22/17: TAAR very muchTAXguide 21/17: the tax implications of BrexitTAXguide 20/17: Intermediate guide to the taxation of trustsTAXguide 19/17: The high income child benefit chargeTAXguide 18/17: HMRC determinations and special reliefTAXguide 19/17: High income child benefit chargeTAXguide 20/17: An intermediate guide to the taxation of UK trustsTAXguide 21/17: The tax implications of BrexitTAXguide 22/17: TAAR very muchTAXguide 23/17: VAT Mini One Stop Shop
We also published our detailed commentary on the Autumn Budget and updated our Tax rates and allowances summary.
Find it at http://www.icaew.com/en/technical/tax/working-with-hmrc/uk-tax-rates-allowances-and-reliefs6. EventsTax Faculty Webinars and TAXtalk
The Tax Faculty has run six webinars since the last report:
Keeping safe in a digital tax worldMaking Tax Digital (MTD) may have been put back a year, but it isn’t going away. MTD for VAT starts in 2019 and tax continues to move into a digital age.
Intermediate guide to the taxation of UK TrustsFollowing on from the very popular Elementary guide to the taxation of UK trusts it is time to take a step up to the intermediate guide.
Demystifying Making Tax DigitalThe focus of Making Tax Digital (MTD) has changed, but the general direction of travel has not.
Demystifying MTD Simple Assessment and MTDiSimple Assessment has received a mixed reception from the profession and in the media.
Budgets, Bills and Acts - a practical overview of recent tax changes2017 has been a bumper year for budgets, finance bills and finance acts – are you up to date?
TAAR very much - Reconstructions and winding up In this webinar Sarah Ghaffari will be joined by Pete Miller to discuss the tax implications of corporate reconstructions, from the tax treatment of distributions to stamp duty charges.
Monthly TAXtalks have also continued.Tax Club
Tax Club met on 23 October 2017 when Dana Ward gave an update on the Criminal Finances Act and on 13 November 2017 when Keith Gordon gave an update on recent tax cases.
Tax Club will resume in early 2018, see www.icaew.com/taxclub for details and various resources available to ICAEW members.7. Representations and consultationsTax representations submitted
The following representations have been submitted since the last report:
ICAEW REP 132/17Large Business Compliance - Enhancing our risk assessment approach
ICAEW REP 131/17Penalties for enablers of defeated tax avoidance
ICAEW REP 128/17Making tax digital for VAT - legislation overview
ICAEW REP 127/17Trust Registration Service
ICAEW REP 126/17Making Tax Digital for income tax: Secondary and tertiary legislation.
ICAEW REP 120/17FB 2017-18 Settlements: anti-avoidance
ICAEW REP 119/17Termination payments: removal of foreign service relief
ICAEW REP 117/17Tax Policy: Autumn budget, making tax digital, finance bill and longer term recommendations for a better tax system
ICAEW REP 116/17Budget Autumn 2017 - to submit representations as part of the policy-making process
ICAEW REP 115/17Partnership taxation: proposals to clarify the tax treatment
ICAEW REP 113/17Employment income provided through third parties
ICAEW REP 111/17Tax Challenges of the Digitalized Economy
ICAEW REP 110/17Delivering a tax cut for small businesses: A new small business rates relief scheme for Wales
ICAEW REP 109/17Domicile, off-shore trusts, overseas property etc
ICAEW REP 108/17FB17-19 clause 34-35 schedule 11-12 Disguised remuneration loan chargeOpen consultations
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:
Venture capital trusts: share exchanges
Fair taxation of the digital economy
Corporate tax and the digital economy
Ian Young/Sarah Ghaffari
Gains by non-residents on UK immovable property
Rent a room relief –call for evidence
Royalty withholding tax
VAT and vouchers
Corporate interest restriction: leases
Plant and machinery lease accounting changes
MTD interest harmonisation and sanctions for late payment
Tackling the hidden economy: public sector licensing