In the news: July 2024

ATT technical officer Helen Thornley appeared on the BBC News Channel to discuss VAT and other tax pledges made ahead of the General Election. She explained that the main parties have vowed to keep the main rate of VAT at 20%,but Labour plan to expand the scope of VAT to private school fees.

‘Joanne Walker, technical officer at the Low Incomes Tax Reform Group (LITRG), said child trust funds mature on the 18thbirthday of the person they belong to. “At that point they can decide whether to take the money or transfer it into a tax-free adult ISA.”’

Daily Express, 15 May

‘With the [NAO] report suggesting HMRC customer services have been told to find at least £116 million of new savings during the 2024-25 tax year, this week’s £51 million funding injection, while welcome, amounts to no more than slowing the pace of the cuts and tempering their short-term impact. Helping willing taxpayers to be compliant is a vital part of HMRC’s job.’

Richard Wild, CIOT head of tax technical, in the Financial Times on HMRC funding, 17 May

‘According to the Chartered Institute of Taxation, anyone earning more than £27,850 will pay more income tax in Scotland than someone earning the same amount in other parts of the country.’

The Herald on Scottish tax divergence, 18 May

‘The tax gap has shifted by £3 billion over 18 years. To think that you can reduce it by £5 billion or £6 billion per annum over the next five years, I think would be quite a tall order.’

Steven Pinhey, technical officer at the Association of Taxation Technicians, in the Financial Times on tax avoidance, 31 May