New President of the Chartered Institute of Taxation (CIOT), Nichola Ross Martin, is calling for more debate when it comes to the design of the tax system.
In her inaugural speech as CIOT President, Nichola is encouraging the government to take a more strategic approach to tax policy, consulting earlier and giving greater thought to the design of the tax system.
She said, “While there is plenty of argument about rates and burdens in parliament, there is very little about reform and design.
“Take employment taxes. The PAYE system is the government’s main breadwinner. Successive governments have tweaked the rates and thresholds for national insurance but paid rather less attention to the fundamental issues as to how tax policy might adapt to cope with the changing world of work.”
On Making Tax Digital (MTD), Nichola said:
“Moving clients into MTD will not always be easy. The transformation required is not just about software; it’s about having the staff and other services in place to deal with demand.
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“Making a success of MTD will need HMRC and tax professionals to continue to work closely together. The building in of multi-agent functionality, as requested by CIOT and others, is a really welcome step in HMRC’s MTD development process. We appreciate how long it takes to make this kind of transformation but are still pushing to ensure that this doesn’t remain a second-tier priority in future digital changes.
“We will play our part, publicising, educating and providing constructive challenge where we think things can be improved.”
On HMRC service levels, Nichola said:
“The shift into digital is inevitably a slow process, due to the complexities involved. That means it is important that government ensures that online services are fit for purpose before restricting access to traditional contact methods like phone and post.
“Our joint report with ICAEW on HMRC’s service levels set out constructive recommendations for how services can be improved, and with that pressure on HMRC’s systems reduced. The minister’s announcement that a dedicated mailbox will be set up for agents with unresolved PAYE and self-assessment queries delivers one of those recommendations and is welcome. I’ll continue to press our other proposals with ministers and HMRC over the year ahead.”
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