Weekly tax brief - 7 June 2017

In this edition of RSM’s weekly round-up of the most important tax news, we cover the latest developments.

The general election: a lost opportunity for tax reform

07 June 2017

Why is it so difficult to have a sensible conversation about tax? After all, the questions are fairly easy to identify. But the shrill defensiveness over tax increases which we are now seeing, coupled with the traditional British view that tax hikes are only acceptable if they are paid by somebody else, is seriously impeding the development of a tax system which is fit for purpose.

Recent HMRC systems errors raise concerns about Making Tax Digital

07 June 2017

Two recent cases in which HMRC’s inability to present a clear and unambiguous case to the taxpayer and subsequently to the tribunal have led to a loss of tax and/or penalty which would otherwise be due. If these errors are down to HMRC’s IT systems not being designed with enough thought about how their outputs would appear to taxpayers, what hope is there for Making Tax Digital?

The effective tax rates you won’t see listed in the party manifestos or your P60

07 June 2017

It is a peculiar coincidence that the election is happening at the time when all employees receive their P60 outlining their earnings and the tax paid for the 2016/17 tax year. In many cases this is where a large number of individuals realise just how much tax and NIC they actually pay. However, for approximately 800,000 tax payers, their effective rates of tax are hidden within those figures.