2008

Lessons from Down Under Although inevitably a much smaller economy than the UK's, New Zealand faces many of the same tax problems. Its ways of solving problems of tax administration have often been innovative and influential on UK thinking. A recent 'State of the Nation' paper gives further food for thought. 31 December 2008
Where is my Christmas bonus? Pensioners may remember that the Chancellor promised in the Pre-Budget Report to give them an extra £60 as a Christmas bonus. Christmas is not far off so when am I going to get it? 23 December 2008
Pensions limit for the rich also hits the poor We acknowledged that this year’s Pre-Budget Report had some good news for those on low-incomes. But tucked away in the detail is a proposal which will affect the poorer pensioner in a way that we do not like at all. 12 December 2008
Interest and older people: commonsense from HMRC For the last week or so HMRC have been running a campaign to remind people who are not taxpayers that they should register with their bank/building society to get their interest paid without tax deduction. Although we would have preferred HMRC to have helped in other ways, the campaign has elicited a new Revenue pragmatism and this is to be welcomed. 8 December 2008
Tax return deadline missed? The 31 October deadline for paper filing of tax returns has passed. Those who have not registered for online filing and not yet submitted their tax return will have begun to receive letters from HMRC explaining that they should now file their returns online. However there may be other options or help at hand. 2 December 2008
Direct Payments - even more joining up please The Department of Health (DH) proposes to give local authorities the power to extend direct payments to those who lack the capacity to consent to their receipt. In responding to this consultation, LITRG has again highlighted the need for HMRC, DH and the local authorities to consider how the recipients of the direct payments will comply with the statutory obligations, particularly payroll, that go with employing a carer. 26 November 2008
Pre-Budget report makes low income-people a priority In the most complex Pre-Budget report so far, the Chancellor has concentrated many of his proposals on those in the UK who are amongst the most disadvantaged. This approach is welcome; whether his measures will have the effects he anticipates is yet to be seen. 24 November 2008
Tax debt - more help for the vulnerable, please LITRG generally welcomes today’s National Audit Office report on HMRC’s management of tax debt. Recommendations are offered which, if properly implemented, could improve tax debt collection processes for those on low incomes. 20 November 2008
The Chancellor must lighten burdens on the low paid, says LITRG When people are in difficulty through job losses, reductions in hours and other stresses in the wake of the recession, tax and tax credit debt can be unwelcome extra burdens. Therefore, in the run-up to the pre-Budget Report, the Low Incomes Tax Reform Group (LITRG) calls on the Chancellor, the Government and HMRC to ease the load on those with low incomes. 18 November 2008
New rules for tax appeals must cater for the unrepresented As the tax appeals system is changing from April 2009, new rules and procedures are being devised. LITRG feel there is some way to go in terms of arriving at a structure which adequately caters for unrepresented, low-income appellants. 17 November 2008
Care workers and travelling expenses Care workers have one of the most demanding jobs in the country. They are not well paid. Often the job involves a lot of travelling. Often the expenses of travelling are challenged by authorities as not being part of the job. Such challenges are unjust as the care worker has little option but to incur the costs. A new decision gives hope that the challenges will be fewer. 6 November 2008
Feeling the pinch? Many people are being affected by the current economic slowdown through job losses, reductions in income and increased living costs. Now, more than ever in recent years, it is important you claim all that you are entitled to, and let HMRC know if your circumstances have changed. 3 November 2008
Welfare to work: LITRG responds to Green Paper Responding to the Department for Work and Pensions’ (DWP) Green Paper No-one written off: reforming welfare to reward responsibility, LITRG fully supports the Government’s wish to alleviate poverty and help more people into work. But the Paper does not focus enough on the impact of its proposals across the whole of Government. 31 October 2008
Can equality co-exist with compulsory online filing? Taxpayers who have to submit PAYE, corporation tax or VAT returns will soon be required to file online, making HMRC the first government agency to compel ordinary citizens to use IT in meeting their compliance obligations. In response to an HMRC policy document, LITRG has called for paper filing to continue to be available to small employers, particularly those with limited IT capability or certain types of disability. 25 October 2008
Partnerships - something Moira Stuart didn't tell us Many partnerships who do not have agents to represent them could get caught out by the new filing deadlines, and suffer a penalty charge. HMRC have been driving the online filing push with Moira Stuart reminding people to file paper returns by 31 October. Really HMRC want you to file online, but they forget to tell you that their software does not support online filing for partnerships. 23 October 2008
Childcare vouchers: home truths We return once more to our perennial health warning about tax free childcare vouchers provided by employers. If employees are receiving tax credits of more than £545 a year, they can lose money by accepting these vouchers. We still see far too many incorrect statements on government and other websites; and still HMRC do not accept that it is something on which they should take the lead. 17 October 2008
Pensions not taxed in the past Over many months LITRG has been leading a consortium of charities in an effort to minimise the problems for low income pensioners who may not have paid enough tax in the past due to an HMRC error. In the next week or so pensioners affected by this error will be receiving letters from HMRC telling them what is going to happen. 12 October 2008
Travel expenses: to relieve or not to relieve? … that is the (fundamental) question that we feel should have been asked in a recent consultation. Instead, HM Treasury and HMRC are targeting specific ‘tax avoidance’ tactics used by a few and, in so doing, risk adversely affecting a wider range of employees who are legitimately entitled to claim travelling expenses against tax. 9 October 2008
Tax credits: justice denied by unprecedented delays The Government are now eager to improve the tax credits system. Yet HMRC are in denial about the extent of the delays in dealing with overpayment disputes and appeals. One welfare rights adviser sent nine overpayment disputes, one appeal and one backdating request to HMRC between February and June 2008. As of the start of last week, only two had been acknowledged as received, and only one had elicited any substantive reply. 1 October 2008
Tax Credits - first things first The tax credit system has attracted heavy criticism since its inception in 2003. Whilst it has achieved many more things than its predecessors, LITRG believes that much more should be done to enable the system to reach its full potential. 29 September 2008

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