Summer is here at last (whether or not the sun is shining), but unfortunately that doesn’t mean tax and tax credits papers can be left until the return of dark winter evenings. 

July has some key deadlines not to be ignored.  In particular, people in Self Assessment who have to send in a tax return each year might need to think about the tax they have to pay at the end of this month, and tax credits claimants need to make sure they’ve completed their renewals. 

Read our guide below – the latest in a series of monthly reminder articles. 

In the past, pensioners who had to complete a tax return and who wished to cash in a small pension had to wait until after they had filed their return before they could get a refund of any excess tax deducted from the lump sum.

Now, following LITRG representations, HMRC have agreed that pensioners in self-assessment may claim an immediate refund of overpaid tax when cashing in a small pension.

The latest staff survey for HMRC has been quietly published on the HMRC website.

It shows that HMRC now come bottom in more categories than any other government department surveyed.

Following the National Audit Office’s report last autumn about how HMRC handles tax debt, the Public Accounts Committee have now published their report and recommendations for improvement.

LITRG’s fear is that strong criticism of HMRC could lead to tougher treatment of those in tax debt who are struggling to pay. 

Continuing our series of monthly articles, here we set out some things to remember in June.  Fortunately, 21 June is the longest day of the year, giving you plenty of daylight hours to concentrate on sorting out your tax and benefits!

For individuals, June might not be the busiest month in the tax calendar, but there are some things to be thinking about as we approach the summer months. 

The Finance Bill now going through Parliament proposes to withdraw entitlement to UK personal tax allowances from Commonwealth citizens living in some of the poorest countries in the world. This means they may have to pay UK tax for the first time.

Perhaps they need a Joanna Lumley to run their campaign.

Education Maintenance Allowance (EMA) allows poorer families to keep their children in schooling once they reach 16 years of age. It is supposed to reflect the household income of the families in need.

In Scotland it does that; but not in other countries of the UK. It is time to change things, as the recession bites.

LITRG is often critical of HMRC for not taking on board our suggestions.

But sometimes we can report successes.  Here we outline where we have helped influence changes to HMRC’s proposals on modernising and aligning the powers of the former Inland Revenue and Customs and Excise.

Since the start of the year, each month we have been highlighting points for readers to consider. 

Here are some reminders of things to be thinking about this month.

In its latest report, LITRG shows how inconsistent is the tax and benefits treatment of volunteers’ expenses, and makes recommendations for a simple and coherent approach across Government.

Today the Chancellor set out his plans; they made grim reading.

Those on low incomes have the least reserves to weather bad times and although efforts were made to reduce the impact of the continuing recession on the most vulnerable, many will continue to struggle.

The Chancellor is likely to announce the general approach towards a Charter for HMRC in the Budget this Wednesday. We hope that he recognises that the first draft suggested by HMRC is more of an HMRC Charter than a People’s Charter.

If people on the Clapham Omnibus thought about these things, they might prefer the LITRG suggestion below to the HMRC version.

Some families, where a parent or child has a disability, have lost out on tax credit payments because of complex rules and a lack of HMRC explanation and publicity.

Following a review by HMRC, with LITRG and others, the rules have now been much simplified for those claiming tax credits because of disability.

With the 2009/10 tax year beginning on 6 April, now is the time to take stock of what you need to do to start off the new year on the right footing.

So make your resolution to sort out forms and papers – the earlier the better!

It is particularly important in a recession that government agencies, such as Jobcentre Plus, HMRC, Directgov and the Cabinet Office, join up to provide accurate and helpful information.

However, recent publications and guidance under a new Real help now banner are disappointing.

A recent consultation document from the Department for Children, Schools and Families (DCSF) outlines the Government’s four key aspirations to end child poverty by 2020 and the steps needed to achieve them.

LITRG’s response acknowledges the Government’s progress, but we remain concerned that insufficient attention is paid to various interactions in the tax, tax credit and benefit systems which create disincentives to work.

HMRC are proposing to bring Inheritance Tax record-keeping requirements and time limits for claims and assessments into line with other taxes.

LITRG has expressed reservations about this strategy, given that gathering information for Inheritance Tax returns is a difficult task often performed by friends or relatives of the deceased without help.

Some pensioners are to receive letters any day now telling them that small pensions which they have received for a number of years have not been taxed properly and that this will be corrected from this April.

Although this will be unwelcome news for those who receive such a letter, it is actually very good news that there will be no attempt to tax the past.

Spring is traditionally a time for cleaning in readiness for the brighter days to come.  It is also a time to consider things you might need to do before the new tax year begins on 6 April.

This article therefore identifies some tax and tax credits issues which might need tidying up.

HMRC has been issuing a new style of ‘final demand’ for self assessment liabilities unpaid at 31 January 2009.

Unfortunately much of the wording of these statements is likely to frighten taxpayers into paying up – some of whom might not even owe the amount ‘demanded’.

As the recession deepens, we grow more and more concerned at the incorrect advice that abounds on the subject of childcare vouchers provided by employers, particularly from the one body that many regard as authoritative – HMRC.

The truth is that childcare vouchers can be a good thing, though probably not  for the majority of basic rate taxpayers. Particularly in a recession, having vouchers rather than salary may produce unforeseen consequences.

From 6 April 2009, the Government intends to change business tax relief for the cost of buying or leasing a car. 

Our response to the consultation highlights some concerns, in particular the proposed delay in reintroducing relief on hire cars for disabled people.

HMRC have published their suggested Charter. It tries to express in 227 words the relationship that HMRC expect to have with those who have to deal with them.

It is only a consultation still; but it shows the way that HMRC are thinking. We have some concerns about this thought process.

Many mistakes are made in completing tax credit claim forms so guidance needs to be clear and unambiguous. To help improve standards of claim completion HMRC are changing the style of their claim form notes as from 6 April 2009.

This is a welcome development.

For two years, HMRC have been consulting on modernising their powers on debt collection, investigations, compliance, and charging penalties and interest.

In the latest round of consultation, LITRG is pleased to note that some of our recommendations have been taken on board, but we continue to press for adequate safeguards and suitable provision for unrepresented, low-income taxpayers. 

HMRC have recently published a Purpose, Vision and Way (PVW) that sets out their aspirations.

In this article we ask whether the new PVW offers to HMRC’s low-income customers a promise of a better service than the Mission Statement issued by the Inland Revenue fifteen years ago.

Most people might assume that February is a quieter month in the tax world, after the rush of filing tax returns by the end of January. 

But there are a number of things to watch out for.

Millions of people in the UK are at risk of being left behind in a world where technology is constantly moving forward, according to recent reports from the Department for Communities and Local Government (DCLG).

Action must be taken now to ensure that the so-called ‘digitally excluded’ are not disadvantaged as a result.

HMRC are now taking up to three weeks to process new tax credit claims and up to four weeks to process changes of circumstances which claimants ring to report.

These new delays not only leave low-income families without vital money. They also have important consequences for overpayments.

In running the tax system HMRC exercise certain general management powers (‘collection and management’) alongside the strict law.  This enables them to grant concessionary treatment in some cases where applying the law strictly would have an unduly harsh or unfair result.

HMRC have now announced that some of these concessions will be formalised in legislation.

For some years January has been billed as the month for tax action, but there are other things to think about too, particularly if you are receiving tax credits or benefits.

We have set out below some reminders to help you avoid a range of pitfalls and ensure that you receive what you are due.

A couple of months ago we forecast that the long-running saga of small pensions being untaxed by HMRC was coming to a close.

HMRC were on the point of issuing letters to relevant pensioners, when “administrative difficulties” seemed to have overtaken them. LITRG is now asking for assurances that no attempt will be made to collect tax due on these small pensions for 2008-09 and that the right tax codes will be in place for 2009-10.

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.

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?

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.

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.

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.

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.

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.

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. 

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.

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.

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.

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.

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.

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.

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.

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.

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.

… 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.

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.

The Prime Minister in his Party Conference speech referred to a forthcoming initiative whereby one million families will be helped to connect to broadband and get other computer support.

LITRG welcomes the initiative but we have reservations if it is decided to link eligibility to tax credit entitlement.

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.

In any new regime of interest and penalties, the key principle is that late payment may lead to an interest charge and late filing may result in a penalty, but in general there should be no overlap.

That is the main thrust of LITRG’s response to HMRC’s latest proposals for changes to the penalty and interest regimes for late filing of returns and late payment of tax.

In June, HMRC began consulting on developing a new Charter to replace the old ‘taxpayers’ charters’ formerly published by the Inland Revenue and Customs and Excise prior to their merger.

Our response looks at how a properly developed, maintained and enforced Charter could improve the experience of HMRC’s low-income ‘customers’.

If you thought qualifying for tax credits was complex, then just try and work out whether you qualify for a grant to warm your home.

Each country of the UK has a different scheme and they all equally struggle to explain whether you qualify.

A more aggressive stance by HMRC is leading to more tax credit debt being pursued in the courts. The courts sometimes may not realise that tax credit debt should be treated differently to ordinary tax debt.

The production by HMRC of a certificate of debt is not conclusive that a tax credit debt is due and unpaid, and the tax credit claimant may be able to use that to their advantage.

On 13 May 2008, the Chancellor announced (see our earlier article) that to compensate for the removal of the 10% tax band  he would increase the basic personal allowance and generate a rebate for most basic rate taxpayers.

Most taxpayers will see this rebate in their pay packets from this month; but because of the workings of the tax system some will have to wait for it.

Earlier this year LITRG led a consortium of charities in convincing HMRC to use its discretionary powers to waive tax debts on certain small pensions. These debts arose prior to April 2008 and we said that we would keep track of HMRC progress in relation to the current tax year, where the tax has still to be collected.

We have continued to meet with HMRC and are pleased to report that they are taking all reasonable steps to make this difficult task as painless for pensioners as possible.

In May, LITRG expressed concerns over whether everyone entitled to Child Trust Fund payments was receiving them.

The Government Minister responsible has now confirmed the numbers of children that were losing out and the changes that will be made.

From April 2009, when taxpayers find themselves in dispute with HMRC, they will be able to ask HMRC to carry out an “internal review” of their case as a simpler and less costly alternative to appealing to the Tribunal.

But LITRG have warned that HMRC’s published ideas for the review are too complex and the process itself lacks the independence of an appeal directly to the Tribunal.

July 31st is an important date in the tax credit calendar. Most tax credit claimants should have completed the renewals process by then.

Failure to meet the deadline can cause untold problems and can generate significant overpayments which later have to be clawed back.

The government propose to make most lone parents seek work from November 2008 if their youngest child is aged at least 12.

There are short-term incentives designed to ensure that lone parents will be better off in work. But will lone parent advisers be able to explain all the benefit, tax and NIC consequences of accepting a job offer? And will lone parents still be better off once the short-term incentives have passed?

A Parliamentary committee and several mental health organisations have called for a review of archaic legislation that uses discriminatory words such as ‘lunatic’ or ‘idiot’.

Since 2003 LITRG has been campaigning for changes to parts of the UK tax legislation where those very words are still used – so far without success.

The Scottish Government have recently sought views on the possible replacement of council tax by a local income tax.

Drawing from our previous research we have indicated that we have significant concerns for those on low incomes and other vulnerable groups.

HMRC are spending £2.7 billion between 2006-07 and 2010-11 to become a more efficient, customer-focused organisation.

The National Audit Office (NAO) have just published their assessment of progress; it does not make good reading if you are on a low income and expecting improvement any time soon.

Widows whose husbands died before April 1975 are discriminated against by new rules for inheritance tax.

The Government have turned down a LITRG amendment which would have solved the problem.

HMRC announced yesterday that the introduction of the new PAYE Service, due to come into operation this October, has been deferred.

We recognise that IT systems must be robust before they are launched. Nevertheless, this is a blow for low income people as the new PAYE Service promised far greater accuracy in their tax affairs.

HM Revenue and Customs (HMRC) are once again criticised for the levels of estimated fraud and error in tax credit claims.

But we still do not know enough about how much is down to claimant error rather than claimant fraud, and we suspect that HMRC error is more prevalent than they claim.

Education maintenance allowance (EMA) is an allowance for young people to encourage them to remain in education. However the qualification rules are dependent upon a household’s income as measured for tax credits purposes.

If people do not understand tax credits they may well be confused about their entitlement to EMA. Government sources should do more.

In 2010 a new government initiative is due to come on stream to encourage those on low incomes to save. The Savings Gateway will provide a cash savings account for regular savings. If you save, then the government will add to your contributions.

LITRG welcomes such an initiative in principle, but we do have concerns about how the processes  will work, especially as much reliance is to be placed upon the databases of HM Revenue & Customs (HMRC) and the Department for Work & Pensions (DWP).  The scheme looks to be complex to administer.

The filing rules for Self Assessment change this year; not everyone who needs to know, does so.

This was brought home to us by a recent newspaper article quoting last year’s regime. This short article looks at features of the new tax return and reminds you of the new rules and deadlines. 

Even after the raising of personal allowances announced on 13 May 2008, there are still some 1.1 million households on low incomes yet to be compensated for the withdrawal of the 10% starting rate.

An MPs’ report recommends that the remaining losers be identified and compensated. For the longer term, Budget decisions should be taken not in isolation, but having regard to broader Government objectives.

When the records of millions of child benefit records went missing the morale of HMRC hit rock bottom, as did the trust of many HMRC customers.

The Poynter review published yesterday marks out a new strategic approach to HMRC data which should be welcomed by people on low incomes provided, and it is a big proviso, that the needs of the most vulnerable “customers” of HMRC are appropriately recognised.

LITRG has tried hard to defer the changes the Government propose to the way in which low-income migrant workers and students are taxed in this country. But last week, at the committee scrutinising the Finance Bill, the Government rejected any change.

If you are a foreign student or worker you are now reliant on guidance from the Revenue to work out your tax obligations. A Government Minister has promised that the Revenue will provide “simple, non-technical explanations of the concepts and rules”.

The Government’s Office for Disability Issues (ODI) has held a consultation on development of the Independent Living Strategy – the initiative to help more vulnerable and disabled people to live independently within the community.

Following on from our report Independent living, direct payments and the tax system published earlier this year, we have once again emphasised the importance of joined-up government. 

Together with the National Youth Agency , we recently conducted a survey asking what young people would like to know about the tax system.

The results have now been collated.

HMRC has held a consultation on Improving the collection of National Insurance Contributions for the self-employed, which closed on 6 June 2008.

In our response, LITRG have asked whether HMRC have really done enough ground work to assess the needs of their customer base – particularly those on low incomes – before proposing detailed changes. 

Almost since its very beginning, the Child Support Agency (CSA) has been criticised for failing to achieve its primary aim – to ensure that children are provided for by their parents. 

The legislation for a new system of child support has just completed its journey through Parliament. This new system is very dependent upon data from HMRC, but will that data be good enough?

If you want to cash in a small pension, or several small pensions of up to £17,500 in value during the tax year to 5 April 2010, you may find that too much tax is taken off the lump sum you get.

This article will explain how this happens, and what you need to do in order to reclaim the excess tax.

One proposal lurking in the depths of the 2008 Finance Bill is to reduce the current ‘6 year’ time limit for tax refunds to just 4 years. 

If you have been careless with your tax affairs, HMRC can go after you for 6 years of back tax. But HMRC now want to reduce their obligations to you down to 4 years, even where the repayments are due to HMRC errors. Where is the fairness?

What if one day you receive a brown envelope in the post and inside is a letter from HM Revenue & Customs telling you that they are making some enquiries into your tax return or tax credit claim?

How will you feel? Worried, confused, irritated or perhaps, even angry? But what should you do?

In February, HMRC announced a consultation on changes to the way in which students’ tax is collected under Pay As You Earn (PAYE).

LITRG’s response builds on our earlier report, which recommended special arrangements for students.

The Child Trust Fund (CTF) is one of those government initiatives which seem like a good idea, but which is bedevilled by detailed provisions. This means that, in reality, the individual recipient has little chance of understanding whether they are receiving that to which they are entitled.

LITRG expressed this concern in evidence given to a recent Treasury Committee enquiry into the Child Trust Fund. Now new evidence of significant errors makes us even more worried that those on low incomes have been losing out.

Figures for tax credit overpayments were published today and they showed a fall.

Even more significantly HMRC have published a discussion document looking at possible amendments to the tax credits regime to make it more customer-friendly.

HMRC are still gearing themselves up to collect tax from unsuspecting low income pensioners. The debts arise because of HMRC inefficiencies.

Yet, HMRC seem intent on pressing forward with the collection because they feel it would be unfair on other taxpayers not to do so.

The Commission of the European Union has sought views on what type of goods and services should qualify for a lower rate of VAT, and LITRG has responded. 

Building on our previous research, we commented on the impact of VAT on vulnerable people and how its effect can be softened with reduced rates. 

Not everyone wins overall in the 10% furore, even after the £2.7 billion “compensation” package announced by the Chancellor.

One particular group, those between 60 and 64 , are still likely to lose either because their income is too low, or because the Department for Work and Pensions and HMRC do not co-operate with each other.

Yesterday the Chancellor announced the Government's chosen route to solving the "10% dilemma".

It was not LITRG's preferred option as it does not fully compensate those on the lowest incomes.

The Finance Bill contains proposals which threaten to make the life of an overseas student a nightmare and cost HMRC a fortune in trying to explain the impossible.

This is all part of the collateral damage as the government tries to attack the non-domiciles with new tax rules.

Many people lose out because they do not know they can get certain goods and services cheaper if they are 60 or over or have a disability.

VAT (‘Value Added Tax’) is charged at 17.5% on most goods and services but some things have no VAT or it is charged at a reduced rate to people who identify themselves as qualifying for the discount.

HMRC have launched a new part of their website aimed at making contact easier.

So how did they do? We tried to find out on behalf of the various groups we aim to represent.

Two days ago we were full of praise for the new tax credits upgrade of the HMRC website and the new approach it announced of dealing with disputes by telephone.

HMRC now tell us, it wasn’t quite as simple as we had imagined.

Mostly when we post a story about tax credits on our website it is a tale of unmitigated gloom; so when this is not the case we like to tell you too.

HMRC have re-vamped their tax credits website and it is a significant improvement.

The majority of people do not have to complete a self assessment tax return.  This is because employed earnings and pensions are generally taxed under Pay As You Earn (PAYE).    

In the fifth of our series on pensioner problems, we consider why it is that some receive a full self assessment tax return after many years of no contact with HMRC and without an explanation. This can be a very worrying experience for a pensioner.

In the fourth of our series of case studies we examine a case of a taxpayer failing to receive the benefit of the 10% band – worth around £200 a year.  Although this tax band is being abolished for earnings and pension income from 6 April 2008, it will still exist for savings income.

This case also demonstrates the inconsistency in current HMRC practices.  Why should a tax repayment be issued to a customer one year, entirely unprompted, but not for subsequent years? 

The abolition of the 10% starting rate band was intended to simplify the tax system.

But does that claim really bear close scrutiny?

The abolition of the 10% tax band will increase the tax liability for some people under 65 who are not entitled to tax credits. Women pensioners between the ages of 60 and 64 on low incomes are hit particularly badly by the abolition of the 10% band of tax from 6th April 2008.

This is not just because of the increase in tax, but also because of the lack of joined-up systems between HM Revenue & Customs (HMRC) and the Pension Service.

In our report on Direct Payments  published in January we recommended that there should be much better liaison between Government Departments.

As if to illustrate that need, the Department of Health published this month their latest publication “A guide to receiving direct payments from your local council”. 

HMRC is proposing to harmonise and extend its powers. Although LITRG has no fundamental disagreements with the emerging approaches we do have concerns about the detail.

In our response to the latest consultations LITRG has called for taxpayer safeguards to be enshrined in law, not just reflected in internal guidance.

The deadline for submitting tax returns for 2006-07, and for paying the remainder of any tax due for that year, was 31 January 2008.  Since then, HMRC’s systems have been generating £100 fixed penalty notices for tax returns filed late.  For 2006/07 tax which was still unpaid at 28 February, 5% surcharge notices will also be issued. 

These notices are produced automatically and sometimes incorrectly.  So if you have had a penalty notice even though you did send in your return on time, or did pay your tax by 28 February, challenge the penalty! 

HMRC have just completed a consultation on whether employers should operate PAYE on benefits and expenses and whether the benefits rules for those earning less than £8,500 should be changed.

We have raised concerns about the impact of these proposals on some of the most vulnerable members of society. We have also recommended that further research is done before HMRC press ahead.

Most low income taxpayers are outside the self assessment system but increasing numbers are being brought within it, particularly pensioners.

The deadline for filing paper returns will change for returns issued next month; it is to be brought forward to 31 October. 

Alistair Darling, with very little room for manoeuvre, produced an unexciting prospect for those on low incomes in his Budget today.

Nearly all of the changes from April were foreshadowed, but there were some small surprises (and disappointments at what was not) hidden in the small print.

The latest survey of morale within HMRC shows a continuing and worrying trend.

It has been a bad few months for the organisation with the loss of data and a damning report on tax credits from the Ombudsman, but have too many straws been placed upon this camel’s back?

In many parts of the tax system the law and processes are so complex that they defeat the mythical “man on the Clapham omnibus” (and perhaps some of the advisers travelling with him).

Also “your local HMRC man” is becoming equally mythical as HMRC drive their customer