The CIOT has submitted further sets of representations, ahead of the Spring 2023 Budget:
1. Employment taxes and pensions: many of the CIOT’s recommendations address inconsistency around the tax treatment of expenses incurred by employees, with a particular focus on homeworking expenses. Existing exemptions and deductions should also reflect inflationary increases. Part 4 of the CIOT’s document provides a helpful list of employment-related expenses, deductions and allowances together with recommendations for review.
On pensions (para 2.31 onwards), comments cover the tax treatment of lump sums and block transfers, with a recommendation to increase the annual and lifetime allowances given the unintended consequences in key sectors.
2. Repayment interest: the differential between late payment interest paid by the taxpayer to HMRC, and repayment interest paid by HMRC to the taxpayer where tax has been overpaid, is the underlying thread running through this submission. The CIOT suggests that the government should consult on whether the current approach is fair, provides adequate recompense for loss of cashflow and adequate incentive for HMRC to process repayment claims efficiently.
The CIOT has submitted further sets of representations, ahead of the Spring 2023 Budget:
1. Employment taxes and pensions: many of the CIOT’s recommendations address inconsistency around the tax treatment of expenses incurred by employees, with a particular focus on homeworking expenses. Existing exemptions and deductions should also reflect inflationary increases. Part 4 of the CIOT’s document provides a helpful list of employment-related expenses, deductions and allowances together with recommendations for review.
On pensions (para 2.31 onwards), comments cover the tax treatment of lump sums and block transfers, with a recommendation to increase the annual and lifetime allowances given the unintended consequences in key sectors.
2. Repayment interest: the differential between late payment interest paid by the taxpayer to HMRC, and repayment interest paid by HMRC to the taxpayer where tax has been overpaid, is the underlying thread running through this submission. The CIOT suggests that the government should consult on whether the current approach is fair, provides adequate recompense for loss of cashflow and adequate incentive for HMRC to process repayment claims efficiently.
.jpg?sfvrsn=335a554c_0 "300 x 250 (MPU)")