Government tax rules are hindering good government intentions to help vulnerable and disabled people live independently within the community.

A new report from the Low Incomes Tax Reform Group finds that more help and joined-up government are needed if the move towards direct payments and individual budgets is to be effective as it could be.

This report by Community Links, Low Incomes Tax Reform Group and Child Poverty Action Group follows a technical and qualitative study of the tax, tax credit and social security systems and barriers to employment.

Our research included interviews with a number of individuals in receipt of tax credits and social security benefits in, out of and contemplating work.

For too long pensioners on low incomes have been a low priority in the tax world of HMRC.  The merger of the old Inland Revenue and Customs & Excise has focused on business tax and it is now time for the tax problems of the low-income pensioner to become a priority for HMRC.

In its latest report Older people on low incomes. The case for tax reform, published on 30 May 2007, LITRG explains the tax problems, of becoming a pensioner, suffering bereavement or going into care.  It also highlights many key areas where HMRC make mistakes and outlines reforms. 

LITRG have set out a road map of simple change which, if implemented, would make the lives of millions of pensioners that much better.

LITRG have participated in the consultations about tribunals reform which followed the Leggatt report and the White Paper issued by the Department for Constitutional Affairs. In a series of written contributions, we have considered specific aspects of the proposals for reforming the tax appeal tribunals from the perspective of a user on a low to modest income, probably without professional representation.

In our report Tax Appeals - a low income perspective, we look at the reform from the point of view of the unrepresented appellant and make recommendations designed to remove the barriers they face.