The Low Incomes Tax Reform Group (LITRG) is an initiative of the Chartered Institute of Taxation (CIOT) to give a voice to the unrepresented.
[Please note: We are a charity and not part of HM Revenue & Customs (HMRC) the Government department who deal with tax and tax credits. Although we do engage closely with HMRC and other Government departments on both our core and project work, we are unable to access tax or tax credit records, make changes to information or pass on reported changes to HMRC.]
Our mission is to:
‘Target for help and information those least able in the community to afford to pay for advice and make a real difference to their understanding of the systems of taxation and related benefits whilst working to make them more equitable and accessible for their needs.’
Since 1998, LITRG has been working to improve the policy and processes of the tax, tax credits and associated welfare systems for the benefit of those on low incomes. Everything we do is aimed at improving the tax and benefits experience of workers (employed, self-employed and agency workers), pensioners, migrants, students, disabled people and carers.
LITRG works extensively with HM Revenue & Customs (HMRC), the Department for Work and Pensions (DWP), HM Treasury, Revenue Scotland, Scotland Office, the Welsh Government, Department for Business, Innovation and Skills (BIS) as well as other Government departments, local authorities and devolved administrations. We provide comment on proposals and put forward our own ideas for improving the system. Too often tax and related welfare laws and administrative systems are not designed with the low-income user in mind and this often makes life difficult for those we try to help.
LITRG also works with a number of other charitable organisations through our sub-committee and groups. We do this by:
Providing comprehensive information, guidance and support to taxpayers and tax credit claimants and their advisers
Providing the most comprehensive, up to date primary source of information and guidance for taxpayers, tax credit claimants and their advisers on tax, national insurance contributions and tax credits via www.litrg.org.uk.
Publishing regular news updates on areas of interest to our website readers.
Providing support for tax credit advisers via our award-winningwww.revenuebenefits.org.uk website.
Helping students understand their tax and tax credits through our dedicated website www.taxguideforstudents.org.uk.
Offering guidance, support and help to disabled people, their carers, families and support workers who chose to take on a personal assistant to help with their care needs. Our dedicated www.disabilitytaxguide.org.uk website is the only website that explains all of the tax and national insurance consequences of becoming an employer and supports people through the process step by step.
Supporting other charities and organisations by providing tax information for their websites, training for their staff and running tax and tax credit workshops.
Encouraging government agencies, primarily HMRC, to produce the very best information for all taxpayers, especially those on low incomes.
Analysing the interaction between the tax, tax credits and benefit systems to understand potential interactions and how changes in one system may have an effect elsewhere.
Researching particular tax areas that may be giving cause for concern and writing reports recommending change.
Examining Finance Bills and similar tax legislation for provisions which may adversely affect the low income population, providing briefings on the legislation’s effect on this group and then proposing alternatives.
Monitoring operational developments within HMRC, DWP and other related Government departments which may affect those on low incomes.
Encouraging people who are in those constituencies to feed to us their day-to-day experiences of the tax and related benefit system.
Testing by ’mystery shopping’ whether the services provided by HMRC and related government departments are as promised.
Sitting on numerous tax and benefit consultative groups and putting forward the perspective of those who cannot afford to pay for advice.
Promoting the work of tax charities via the Bridge the Gap campaign and encouraging professional tax advisers to give their time pro bono to such charities; we have supported TaxAid, the first of the specialist charities; and we set up Tax Help for Older People which provides specialist help to low-income pensioners.
Whom we try and help
We have identified five groups of the lpopulation who we believe have the greatest need of additional help. We define low income as household income below £20,000. They are:
Low income workers
Those with disabilities (and those who care for them)
We also work to help other hard to reach or vulnerable groups who may not always fall within the definition of low income but who have specific need for tax and tax credit information. This includes the armed forces, those with responsibility for children who may claim childcare support or child benefit and various other groups.
We do not generally provide help directly to individuals, much as we would like to, because we do not have the resources. But we try and point people to where they can best help themselves. We do occasionally run pilots that provide additional help and support. You can find out more on our getting help page. You can however provide us with help by giving us your experience through our Contact page.
What help can you expect to find?
We do not try to provide complete help for every visitor on our website. Bearing in mind that we believe it is a government’s responsibility to provide the citizen with an adequate explanation of its laws and processes, we only provide information where, in our opinion, they are failing to do that. We will point you to their material if we consider it is of good quality .
LITRG also have three other websites, which are supported by funding from HMRC, that provide specialist advice to certain groups:
www.taxguideforstudents.org.uk – A site giving information and support to students about tax, national insurance and related issues
www.disabilitytaxguide.org.uk – A site which provides support and advice to people who are taking on a personal assistant at home to help them live independently. The site primarily offers help on tax, tax employment status, National Insurance and running a payroll.
www.revenuebenefits.org.uk – A site for advisers which provides detailed guidance, legislation, resources and policy documents relating to tax credits, child benefit, national minimum wage and the transition to universal credit.
You can go directly to where we provide help for the following types of people:
Disabled people and carers
You can also go to areas by popular topic:
Capital gains tax
You can also search by going to:
Our Google search engine (on any page at the top)
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