18 April is branded as ‘Tax Administration and Maintenance Day’, where the government showcase their plans for the coming year. This year it was all about streamlining, modernising, and addressing non-compliance and tax avoidance.
Two schemes that are set to get simpler are:
The Help to Save scheme which offers working individuals on low income a 4-year savings account attracting a 50% government bonus and the way Stamp Duty and Stamp Duty Reserve Tax on shares operate.
The government are committed to bridging the tax gap, by tackling non-compliance and regulating umbrella companies (often known as recruitment agencies). There will also be consultations on the introduction of new criminal offences to be levied on promoters of tax avoidance schemes.
Plans were shared on the way the government will introduce a retrospective National Insurance credit to those parents who have not claimed Child Benefit. With the aim to avoid the ‘High Income Child Benefit Charge’, thus reducing the eligibility to claim a full State Pension in the future, in earlier years. It is hoped that those who have paid National Insurance voluntarily in the past will be refunded.
There will also be consultations on the clarity around the Capital Gains Tax treatment of crypto assets and VAT relief for low value goods donated by businesses for charities to give to those in need
The jury is out as to whether all of the announcements on Budget Day, 18 April 2024, or subsequent consultations launched will simplify our tax system.
The CKLG team will keep you updated when decisions from the consultations are published. If any aspect of your tax affairs worries you, please call one of our friendly advisers on 01223 810100 for a chat.
