Bookended by a Conservative Budget in the spring and a Labour Budget in the autumn, 2024 was a busy year in politics and in tax. In this episode of The Tax Track, we reflect on key measures from the recent Budget and consider areas that kept us busy during 2024 and will do again in 2025, including regulation of tax agents and HMRC service levels.

Links

• Autumn Budget 2024
  https://www.icaew.com/technical/economy/autumn-budget-2024
• Tax regulation: change must be in the public interest
  https://www.icaew.com/insights/tax-news/2024/may-2024/tax-regulation-change-must-be-in-the-public-interest 
• MTD income tax self assessment
  https://www.icaew.com/technical/tax/making-tax-digital/mtd-guidance/mtd-and-income-tax
• HMRC on hold
  https://www.icaew.com/insights/podcast/the-tax-track/hmrc-on-hold

Panellists

• Stephen Relf, Technical Manager, Tax, ICAEW
• Lindsey Wicks, Senior Technical Manager for Tax Policy, ICAEW
• Frank Haskew, Head of Taxation Strategy, ICAEW

Producer 

Ed Adams

Episode first published: 2 December 2024
Podcast recorded: 19 November 2024

In this episode we’ll be talking about the problems with VAT and why ICAEW is launching a new campaign, How to Fix VAT.

Introduced in the UK some 50 years ago, VAT is now the UK’s third largest source of tax revenue, behind income tax and national insurance contributions. But, it can be costly and complicated to comply with, and that’s despite previous efforts at simplification.

Links

• The complicated and costly world of VAT
  https://www.icaew.com/insights/tax-news/2024/oct-2024/the-complicated-and-costly-world-of-vat 
• The ups and downs of the VAT registration threshold
  https://www.icaew.com/insights/tax-news/2024/sep-2024/the-ups-and-downs-of-the-vat-registration-threshold 
• Progressive VAT: is now the time?
  https://www.icaew.com/insights/tax-news/2024/oct-2024/progressive-vat-is-now-the-time

Panellists

• Stephen Relf, Technical Manager, Tax, ICAEW
• Ed Saltmarsh, Technical Manager, VAT and customs, ICAEW
• Ruth Corkin, Principal, VAT and Indirect Tax Advisory, Hillier Hopkins

Producer

Ed Adams

Episode first published: 29 October 2024
Podcast recorded: 22 October 2024

The abolition of the furnished holiday lettings (FHL) rules from April 2025 was announced in the Spring Budget. Following the general election, the Labour government confirmed that it would proceed with the measure, and provided more details in the form of draft legislation, an explanatory note and a policy paper. While some of the detail may change as the legislation is finalised, there will be tax implications for those affected – we discuss the potential issues.

Links

• Why furnished holiday let owners are facing higher tax bills
  https://www.icaew.com/technical/tax/tax-faculty/taxline/articles/2024/why-furnished-holiday-let-owners-are-facing-higher-tax-bills
• ICAEW calls again for FHL brightline test
  https://www.icaew.com/insights/tax-news/2024/sep-2024/icaew-calls-again-for-fhl-brightline-test
• HMRC rejects ‘brightline’ test for furnished holiday lets (FHLs)
  https://www.icaew.com/insights/tax-news/2024/may-2024/hmrc-rejects-brightline-test-for-furnished-holiday-lets-fhls

Panellists

• Stephen Relf, Technical Manager, Tax, ICAEW
• Lindsey Wicks, Senior Technical Manager, Tax Policy, ICAEW
• Katherine Ford, Technical Manager, Tax, ICAEW

Producer

Ed Adams

Episode first published: 2 October 2024
Podcast recorded: 24 September 2024

Making Tax Digital income tax self assessment (MTD ITSA) will start in April 2026 for the self-employed and those with income from property with gross income of more than £50,000. It has been described as the biggest change to affect tax agents and their clients since 1996/97 when self assessment was introduced. This episode of The Tax Track looks at what agents need to do now to ensure that their practice and their clients are ready.

Discussing the issues involved are Lindsey Wicks, Senior Technical Manager, Tax Policy, ICAEW; Caroline Miskin, Senior Technical Manager, Digital Taxation, ICAEW; and Rebecca Benneyworth MBE FCA, sole practitioner and tax speaker.

Links

• Making Tax Digital
  www.icaew.com/mtd 

Panellists

• Lindsey Wicks, Senior Technical Manager, Tax Policy, ICAEW
• Caroline Miskin, Senior Technical Manager, Digital Taxation, ICAEW
• Rebecca Benneyworth MBE FCA, founder, Rebecca Benneyworth & Co, tax speaker, writer and consultant, and deputy chair of the Tax Faculty’s Technical and Oversight Committee

Producer 

Ed Adams

Episode first published: 29 August 2024
Podcast recorded: 20 August 2024

Basis period reform is an important issue at the moment, with 2023/24 a transitional year. We look at the impact of this for businesses filling in their tax returns.

Where an individual’s accounting date deviates from the tax year, there are additional boxes to complete on the tax return for 2023/24, and quite likely additional tax to pay too.

The team also gazes into the Tax Faculty crystal ball to predict what might be in the first Budget of the new Labour government, now scheduled to take place on 30 October.

This month’s experts are Lindsey Wicks, Senior Technical Manager for Tax Policy at ICAEW; Stephen Relf, Technical Manager, Tax; and Richard Jones, Senior Technical Manager, Tax Policy.

Links

• TAXguide 02/22: Basis Period Reform
  https://www.icaew.com/-/media/corporate/files/technical/tax/tax-faculty/taxguides/2022/taxguide-0222-basis-period-reform.ashx 
• Basis period reform begins to bite
  https://www.icaew.com/technical/tax/tax-faculty/taxline/articles/2024/basis-period-reform-begins-to-bite 
• Tax gap closes as a percentage of tax liabilities
  https://www.icaew.com/insights/tax-news/2024/jun-2024/tax-gap-closes-as-a-percentage-of-tax-liabilities 
• What might we see in the next budget?
  https://www.icaew.com/insights/tax-news/2024/jul-2024/what-might-we-see-in-the-next-budget 
• Budget to be delivered on 30 October
  https://www.icaew.com/insights/tax-news/2024/jul-2024/budget-to-be-delivered-on-30-october 

Webinar

• https://www.icaew.com/technical/tax/tax-faculty/webinars-and-recordings/tax-webinars/2024/basis-period-reform-update 

Podcast

• HMRC on hold
  https://www.icaew.com/insights/podcast/the-tax-track/hmrc-on-hold 

Panellists

• Lindsey Wicks, Senior Technical Manager, Tax Policy, ICAEW
• Stephen Relf, Technical Manager, Tax, ICAEW
• Richard Jones, Senior Technical Manager, Tax Policy, ICAEW

Producer 

Ed Adams

Episode first published: 31 July 2024
Podcast recorded: 24 July 2024

A damning report from the National Audit Office in May this year concluded what many have long suspected, that customer service from HMRC is falling ‘far below’ expected levels. In this episode of The Tax Track, we look at the problem, its impact and potential solutions.

The figures are damning, with call waiting times soaring by over 350% over the past five years and just 67% of calls being answered. While HMRC is striving to resolve issues, circumstances beyond its control are holding back progress.

Unpicking this thorny issue are Lindsey Wicks, Senior Technical Manager for Tax Policy at ICAEW; Stephen Relf, Technical Manager, Tax; and Caroline Miskin, Senior Technical Manager, Digital Taxation.

Links

• The Tax Track podcast: A taxing year ahead
  https://www.icaew.com/insights/podcast/the-tax-track/a-taxing-year-ahead 
• HMRC halts decision to restrict helplines
  https://www.icaew.com/insights/tax-news/2024/mar-2024/hmrc-halts-decision-to-restrict-helplines
• Issue 114, agent update
  https://www.gov.uk/government/publications/agent-update-issue-114/issue-114-of-agent-update#tipspost
• ICAEW gives five reasons to use the HMRC app
  https://www.icaew.com/insights/tax-news/2024/mar-2024/icaew-gives-five-reasons-to-use-the-hmrc-app 
• NAO report – HMRC Customer service
  https://www.nao.org.uk/reports/hmrc-customer-service/

Panellists

• Lindsey Wicks, Senior Technical Manager, Tax Policy, ICAEW
• Stephen Relf, Technical Manager, Tax, ICAEW
• Caroline Miskin, Senior Technical Manager, Digital Taxation, ICAEW

Producer 

Ed Adams

Episode first published: 2 July 2024
Podcast recorded: 25 June 2024

In this episode of The Tax Track, we discuss HMRC’s plans to mandate the payrolling of benefits in kind, and look at the implications of a recent tax case.

With the payrolling of all benefits in kind set to be mandatory from 2025/26, we examine whether this really is the simplification it’s meant to be, and what employers and agents can do now to smooth the way. Plus, a recent tax tribunal case highlighted the importance of documentation and how it can severely impact the amount of tax due.

Lindsey Wicks, Senior Technical Manager for Tax Policy at ICAEW, discusses the issues with Stephen Relf, Technical Manager, Tax, and Peter Bickley, Technical Manager, Tax.

Links

• Is it time for employers to start payrolling benefits and expenses? https://www.icaew.com/technical/tax/tax-faculty/taxline/articles/2023/is-it-time-for-employers-to-start-payrolling-benefits-and-expenses 
• Payrolling Benefits and Expenses webinar, 16 October 2024 https://events.icaew.com/pd/29313/payrolling-benefits-and-expenses
• Working out the date of disposal isn’t always child’s play
  https://www.icaew.com/technical/tax/tax-faculty/taxline/articles/2024/working-out-the-date-of-disposal-isnt-always-childs-play 

Panel

• Lindsey Wicks, Senior Technical Manager, Tax Policy, ICAEW
• Stephen Relf, Technical Manager, Tax, ICAEW
• Peter Bickley, Technical Manager, Tax, ICAEW

Producer
Ed Adams

Episode first published: 30 May 2024
Recording date: 20 May 2024

What is an associated company and how can this affect business taxation? This episode of The Tax Track looks at how to spot an associated company and apply the rules, particularly in relation to corporation tax.

‘Associated’ has a broad definition in tax terms, which can give rise to surprising results when it comes to family relationships and other businesses. As well as talking about how this affects the rate of corporation tax, and when corporation tax is payable, we also look at the impacts for other areas of business tax, including national insurance contributions, annual investment allowance and VAT disaggregation.

Lindsey Wicks, Senior Technical Manager for Tax Policy at ICAEW, discusses the issues with Stephen Relf, Technical Manager, Tax, and Angela Clegg, Technical Manager, Business Tax.

Links

• Don’t forget associated companies, warns ICAEW Tax Faculty
  https://www.icaew.com/technical/tax/tax-faculty/taxline/articles/2024/dont-forget-associated-companies-warns-icaew-tax-faculty
• TAXguide 02/23: Associated companies
  https://www.icaew.com/technical/tax/tax-faculty/taxguides/2023/taxguide-02-23 
• Corporation Tax: small profits relief
  https://www.gov.uk/hmrc-internal-manuals/company-taxation-manual/ctm03785 

Panel

• Lindsey Wicks, Senior Technical Manager, Tax Policy, ICAEW
• Stephen Relf, Technical Manager, Tax, ICAEW
• Angela Clegg, Technical Manager, Business Tax, ICAEW

Producer

Ed Adams

Episode first published: 29 April 2024
Recording date: 22 April 2024

The Tax Track is the podcast series from ICAEW that explores the latest developments in the world of tax, and what they mean for members and tax professionals alike. 

In this episode, we look at the implications behind the new tax measures introduced in the Spring Budget and delve into the new research and development tax reliefs that are coming into effect this month.

This month Lindsey Wicks, Senior Technical Manager for Tax Policy at ICAEW, is joined by colleagues Stephen Relf, Technical Manager, Tax, and Richard Jones, Senior Technical Manager, Tax Policy.

Links

• Tax changes taking effect from April 2024
  https://www.icaew.com/technical/tax/tax-faculty/taxline/articles/2024/tax-changes-taking-effect-from-april-2024  
• Budget 2024: Does it change anything?
  https://www.icaew.com/insights/podcast/in-focus/budget-2024-does-it-change-anything 
• R&D tax relief: what you need to know
  https://www.icaew.com/technical/economy/resilience-and-renewal/r-and-d-tax-relief-what-you-need-to-know 
• R&D: what changes apply and from when?
  https://www.icaew.com/technical/tax/tax-faculty/taxline/articles/2024/r-and-d-what-changes-apply-and-from-when 

Panel

• Lindsey Wicks, Senior Technical Manager, Tax Policy, ICAEW
• Stephen Relf, Technical Manager, Tax, ICAEW
• Richard Jones, Senior Technical Manager, Tax Policy, ICAEW

Producer 

Ed Adams

Episode first published: 4 April 2024
Recording date: 25 March 2024

Why would a food producer argue that its product is not ready for human consumption? And why does the tax year start on 6 April? Find out the answers in the latest episode of The Tax Track podcast from ICAEW. 

As the start of the new tax year approaches, we look at what’s changing – and what’s not – in personal and business taxation in the coming year. We also journey back in time to find out why the tax year starts when it does. 

When it comes to VAT rates, it seems some companies will put forward the most spurious of arguments to have a product zero rated. We take a look at recent case involving Walkers Sensations Poppadoms and whether or not they were more like a crisp than their namesake.

This month’s experts are Lindsey Wicks, Senior Technical Manager for Tax Policy at ICAEW; Stephen Relf, Technical Manager, Tax; and Ed Saltmarsh, Technical Manager, VAT and Customs.

Links

• Tax changes taking effect from April 2024:
  https://www.icaew.com/technical/tax/tax-faculty/taxline/articles/2024/tax-changes-taking-effect-from-april-2024
• Align tax year end with calendar to improve tax administration, say practitioners:
  https://www.icaew.com/insights/tax-news/2021/jul-2021/align-tax-year-end-with-calendar-to-improve-tax-administration-say-practitioners
• Lessons from Ireland on changing the tax year:
  https://www.icaew.com/insights/tax-news/2021/april-2021/lessons-from-ireland-on-changing-the-tax-year
• OTS provides valuable insights on changing the tax year:
  https://www.icaew.com/insights/tax-news/2021/sep-2021/ots-provides-valuable-insights-on-changing-the-tax-year 
• A lightning bolt for the VAT Tour Operators Margin Scheme:
  https://www.icaew.com/technical/tax/tax-faculty/taxline/articles/2024/a-lightning-bolt-for-the-vat-tour-operators-margin-scheme
• VAT: the Christmas chocolate conundrum:
  https://www.icaew.com/technical/tax/tax-faculty/taxline/articles/2023/vat-the-christmas-chocolate-conundrum
• Is it time to make VAT simple?:
  https://www.icaew.com/technical/tax/tax-faculty/taxline/archive/taxline-2022/april-2022/is-it-time-to-make-vat-simple
• ICAEW launches manifesto: New government must act on economy:
  https://www.icaew.com/insights/viewpoints-on-the-news/2024/feb-2024/next-government-must-act-to-renew-uk-economy-says-icaew

Panellists

• Lindsey Wicks, Senior Technical Manager, Tax Policy, ICAEW
• Stephen Relf, Technical Manager, Tax, ICAEW
• Ed Saltmarsh, Technical Manager, VAT and Customs, ICAEW

Producer
Ed Adams 

Episode first published: 29 February 2024 
Podcast recorded: 21 February 2024