The Low Incomes Tax Reform Group (LITRG) has cautiously welcomed the Government’s response to the recommendations made by the Social Security Advisory Committee (SSAC) on moving claimants to Universal Credit from tax credits and other working age benefits.
The Chancellor’s failure to address an anomaly in tax rules which means that more than a million people on low incomes are losing out on tax relief on their pension contributions is extremely disappointing, says the Low Incomes Tax Reform Group (LITRG).
The Chancellor’s Budget 2018 was fairly light on major tax announcements. The key theme was that the hard work of the British people is paying off, and that as a result austerity is drawing to an end. The Chancellor said that he wanted to ensure a positive future for the UK by investing in public services, supporting business and improving living standards.
In today’s Budget, the Chancellor announced a package of changes to Universal Credit (UC) following growing concerns that the system is leaving people in hardship and not working as well as it should. LITRG welcomes the changes, but are concerned they do not go far enough to deal with the many problems that currently exist in the UC system.
The Low Incomes Tax Reform Group (LITRG) is urging taxpayers in self-assessment not to freak out if they miss the 2017/18 paper tax return deadline on Wednesday – which coincides with Halloween – because they can avoid late filing penalties by submitting their return online by 31 January 2019 if they are well organised.
We regularly receive queries via our website. We do not give advice, but we try to signpost sources of further information and support. Some of the replies might be useful to others, so occasionally we will post them anonymously as ‘question and answer’ news items. We have received a question recently on how arrears of pay made by employers should be taxed.