Submissions

LITRG responds to consultations whenever the interests of people on low incomes are at stake. Such consultations can be launched by a range of government departments or by parliamentary committees. You can search for a particular submission by scrolling down the submissions below which are in date order or by using the yearly menu in the sidebar.

Transforming Legal Aid: Delivering a more credible and efficient system Following on from previous submissions, the LITRG wish to draw the Ministry of Justice’s attention to the ever increasing importance of legal aid in ensuring low income people are not disadvantaged in their dealings with Government departments. We strongly recommend that plans restricting the availability of legal aid be shelved indefinitely or until the quality of official decision making has reached a more acceptable level. 4 June 2013
Supporting Customers Who Need Extra Help – a new approach The LITRG welcomes HMRC proposals to introduce a better system for those who need enhanced support but are disappointed that the deadline for responses to this consultation is so close to the start of the pilot closure of Enquiry Centres in the North East of England. Our response urges HMRC to offer a tailored service to vulnerable people rather than a ‘one size fits all’ approach. 24 May 2013
Scottish Government Consultation on Tax Management The LITRG calls for Revenue Scotland to draw up a taxpayer’s charter that is enshrined in legislation, setting out the rights and obligations of taxpayers and the Government. While we are encouraged with their approach to tax thus far, we would emphasise the importance of understanding the needs of the digitally excluded and providing them with appropriate support. 11 April 2013
HM Treasury call for Budget representations While the LITRG welcomes the chance to contribute to tax policy development, we stress the need for thorough consultation periods to prevent the implementation of poorly-considered legislation. Nevertheless, we have taken the opportunity of HM Treasury’s last-minute call for representations for the 2013 Budget to raise a matter which has concerned us for some years as having been overlooked and in desperate need of review – that is, the freezing of the income limit for 'rent-a-room' relief. 5 March 2013
Trusts with vulnerable beneficiary – Finance Bill 2013 draft clauses We welcome the decision to extend the vulnerable/disabled trust regime to trusts for beneficiaries in receipt of the daily living component of personal independence payment (PIP). However, the three-step definition we had proposed – involving a list of medical conditions and possible certification by a doctor/lawyer who knows the beneficiary – would have ensured that nobody needing the protection of such trusts would be left out of the statutory definition. 12 February 2013
Simpler Income Tax for the Simplest Small Businesses – Finance Bill 2013 draft clauses While we generally welcome proposals to make accounting and tax simpler for smaller businesses, we have concerns that the draft legislation makes the new cash basis far too complex for unrepresented small businesses and we recommend that clear and detailed guidance is provided to small businesses as soon as possible to enable business owners to make an informed decision on whether to use this new cash basis or the current accruals accounting basis. 11 February 2013
Withdrawing a notice to file a Self Assessment return - Finance Bill 2013 draft clauses The LITRG welcomes the decision to introduce a statutory power allowing HMRC to withdraw a previously issued notice to file a personal, trustee or partnership Self Assessment return, but raise some concerns about the proposed deadline. 8 February 2013
Income tax rules on interest - Finance Bill 2013 draft clauses The LITRG expresses concerns about the proposed legislative changes surrounding the treatment of ‘interest’ which is received as part of a one-off payment of compensation and the introduction of a ‘disguised interest’ rule for individuals. 8 February 2013
Exemption for employee shareholder shares - Finance Bill 2013 draft clauses Following on from previous submissions, LITRG highlights again that the proposed separate employee shareholder status introduces unnecessary complexity into the tax system. The proposed capital gains tax exemption will be of little benefit to many employees so will not be worth the trade off of potentially valuable employment rights. If the status is to be introduced, we stress the need for clear guidance for employees and further consideration of an income tax and national insurance exemption. 8 February 2013
Statutory Residence Test, reforms to ordinary residence and Overseas Workday Relief – Finance Bill 2013 draft clauses Commenting on draft legislation on a statutory residence test, reforms to ordinary residence and overseas workday relief, the LITRG welcome the aim of simplification, but feel that the legislation in its draft form does not go far enough in meeting its objectives of being clear, objective and simple to use. LITRG urge HMRC to ensure there is clear guidance on record-keeping and further refinement of the key definitions used in the draft legislation, in order to avoid confusion and complexity. 7 February 2013
Securing Compliance with RTI – Finance Bill 2013 draft clauses While supporting HMRC’s aim to encourage compliance with Real Time Information (RTI), LITRG is concerned with the speed at which penalties for late filing, late payment and inaccuracies are being introduced. Areas such as manual penalties for paper filers, RTI for the digitally excluded and the commencement of penalties for care and support employers require further discussion. 7 February 2013
More changes needed to RTI for care and support employers Commenting on proposed legislative changes to PAYE and RTI, we welcome the continuation of the simplified PAYE scheme for care and support employers until April 2014. Nevertheless, the proposed changes do not cater for care and support employers not currently in the simplified scheme but who may need to revert to paper filing during 2013/14, perhaps because a deterioration in their health means they cannot easily operate RTI. 17 January 2013
Reduced VAT rates are an important way of helping people on low incomes The European Commission is seeking opinions on how member states apply reduced rates of VAT, and LITRG have responded stressing the important role played by reduced rates in taking care of the more vulnerable members of society. We conclude that member states should keep their ability to apply reduced rates of VAT, including zero rates and exemptions. 4 January 2013
HMRC’s vulnerable trusts consultation – an opportunity for useful and radical reform HMRC’s consultation on reforming the taxation of trusts for vulnerable beneficiaries is a prime opportunity for such trusts to be tailored to the needs of the beneficiaries rather than – as hitherto – compliance with a set of rather arbitrary tax rules. 14 November 2012
A consultation on implementing employee owner status Over the last few weeks, the Department for Business, Innovation and Skills has been consulting on proposals to create a new employment status called ‘employee owner’. The proposals would allow employee owners to receive shares of between £2,000 and £50,000 (which will be exempt from capital gains tax) in exchange for giving up some of their employee rights such as the right to request flexible working and training and the right to statutory redundancy pay. 7 November 2012
Public Service and Demographic Change – LITRG and Tax Help evidence The House of Lords Committee on Public Service and Demographic Change issued a call for evidence this summer inviting views on how population changes, particularly an ageing population, will impact on UK society. LITRG’s joint response with Tax Help for Older People highlights that the tax system is central to addressing future challenges. 1 November 2012
Withdrawal of extra statutory concessions The LITRG has responded to the call for evidence on the withdrawal of extra statutory concessions. 31 October 2012
Blue Badge Scheme in Wales We welcome the opportunity to respond to the Welsh Government’s consultation on changes to the Blue Badge scheme following the introduction of Personal Independent Payments (PIP) from April 2013. 24 October 2012
Lifting the Lid on Tax Avoidance Schemes – LITRG response LITRG welcomes the new programme of work the Government is developing to improve information available to HMRC and their customers about tax avoidance schemes and the risks of using them. 15 October 2012
The future of the Independent Living Fund: LITRG response LITRG has expressed a number of concerns in response to the Department for Work and Pensions' consultation on 'The future of the Independent Living Fund'. 10 October 2012

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