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Tax consultation floodgates to open on 30 Nov: What can we expect

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The second tax administration and maintenance day is set for 30 November. Richard Hattersley sizes up what consultations and documents we could see emerge.  

26th Nov 2021
Editor AccountingWEB
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For a while now the Budget has been criticised by tax experts for being more of a political broadcast without much technical tax substance. 

Aside from an announcement on tonnage tax, the autumn Budget was again slim on tax policy. AccountingWEB readers, therefore, were interested to learn that ‘tax day’ is returning on 30 November and promises to include consultations for announcements made at the Autumn Budget.

It has already taken the tax rose off the Budget bloom, as one professional body contact told AccountingWEB, “tax day is where we’re getting the pure information and the direction the government is going in and takes the shine off Budget.”

Or as AccountingWEB reader Adam Murphy said, “So really the more important day for us is that one, not the Budget!”

The next day, on 1 December, AccountingWEB Live Expo attendees will get an instant reaction to TAMD documents from leading tax experts Rebecca Benneyworth, Paul Aplin and more. (Register now for your free tickets)

What is TAMD?

Tax Administration and Maintenance Day (TAMD) is a new phenomenon brought in by the Treasury in March in an effort to move away from the traditional crash-bang wallop of Budgets. 

What we have now is the BLT: a three step process that starts with the Budget, followed a week or so later by legislation day, and then finally TAMD. 

This time around, it’s no longer just called ‘tax day’ as there is some added administration and maintenance bolted on this time. 

So, what can we expect? 

When Lucy Frazier, the financial secretary to the Treasury, set 30 November as the date in a ministerial statement, she confirmed that the Tax Administration and Maintenance Command Paper “will outline further steps the government is taking to further progress tax simplification, tackle non-compliance and ensure our tax system is fit for the modern world”. 

The Treasury’s press release expanded on this slightly, by revealing that consultations for announcements made at the Autumn Budget and spending review will be part of the tax package. 

We also know that none of the announcements will require legislation in the Finance Bill.

Autumn Budget consultations

The ICAEW’s Tax Faculty expects to see a number of Autumn Budget-related consultations, including 

  • The pros and cons of introducing an online sales tax: The Tax Faculty says to not expect too much design detail here, rather the consultation would explore the merits. 
  • R&D tax reliefs on cloud and data: At the Budget, the Chancellor announced the list of eligible expenditures will be amended to data and cloud computing costs.  As David O’ Keefe explained, it is not clear how exactly these items will be defined for these purposes. Questions O’Keefe is keen to find out include, Will it encompass the costs of cloud server hire, or will it be limited to the costs of software hosted in the cloud?
  • VAT treatment of fund management fees: The Tax Faculty sees this as another possible area the government may look to simplify.
  • Accounting changes for insurance contracts

The Tax Faculty also expects a consultation on the registration for self assessment, which would focus on the procedural and legislative processes improvements.

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Replies (4)

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By North East Accountant
26th Nov 2021 12:48

Consultation docs from HMRC - our esteemed leaders at ICAEW etc should refuse to engage in these shenanigans as HMRC will do what they want anyway.

Thanks (1)
RLI
By lionofludesch
27th Nov 2021 11:09

Mildly surprised that the contents haven't been leaked already.

Thanks (1)
Replying to lionofludesch:
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By Hugo Fair
27th Nov 2021 12:06

That's because they've already decided the answers ... they only leak when they're uncertain and want to 'test the water'!

Thanks (2)
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By djtax
30th Nov 2021 12:22

'One of the big consultations released then was ‘Raising Standards in the Tax Market. .....
The aim of the measure would be to clamp down on “unprofessional and malicious advisers” who “undermine the functioning of the tax advice market”.

What about a clampdown on unprofessional revenue staff who also undermine the functioning of the tax advice market?

Thanks (0)