TaxPersonal TaxTax group fights for students

Tax group fights for students

The Low Incomes Tax Reform Group has called on the Inland Revenue to offer students and the elderly 'focused support' on tax and National Insurance.

According to the LITRG, a body of the Chartered Institute of Taxation, students in the UK pay too much tax, while the elderly faced the ‘nightmare of tax self-assessment’.

John Andrews, chairman of the LITRG said students and pensioners were a ‘neglected group of taxpayers’ who were overpaying tax ‘largely because of ignorance of the system’, and should be given ‘special recognition within the tax system’.

According to the report, Students – The case for making life easier, there was very little information available to students about important issues like tax exemptions for bursary awards, or about the tax advantages available to overseas students.

The report found tax processes designed for students were outdated and did not reflect the current needs of students.

The LITRG called on the Revenue to urgently revise these processes as well as provide students with a specially designed information pack and a separate website. Employees should also be made aware of procedures for employing students.

In an effort to make things easier for the elderly, the LITRG recommended the Department of Social Security and Inland Revenue should team up on key processes, and pressed the Revenue to appoint a ‘official pensioners champion’ to place the needs of pensioners above administrative procedures.

The Revenue should remove thousands of pensioners from the its system under a goodwill agreement and said insurance companies should operate a more simplified PAYE tax on all annuity income, the LITRG suggested.

All suggestions are currently under review by the government.

Links

Revenue admits tax statements errors

Revenue attacked for pensioners policy

ACCA slams self-assessment system

Chartered Institute of Taxation online

Related Articles

HMRC appeal rejected in Tottenham Hotspur case

Administration HMRC appeal rejected in Tottenham Hotspur case

2w Emma Smith, Managing Editor
HMRC urged to clarify impact of income allowances on Self-Assessments

Personal Tax HMRC urged to clarify impact of income allowances on Self-Assessments

2m Alia Shoaib, Reporter
New trading allowance: simplicity, but not as we know it

Administration New trading allowance: simplicity, but not as we know it

2m Emma Rawson, ATT Technical Officer
Wealthy individuals could circumvent top tax rate rises

Personal Tax Wealthy individuals could circumvent top tax rate rises

4m Alia Shoaib, Reporter
Italy grants first successful non-dom status application to former UK non-dom

Personal Tax Italy grants first successful non-dom status application to former UK non-dom

4m Emma Smith, Managing Editor
Industry reaction: Taylor Review does not go far enough in addressing tax issues

Legal Industry reaction: Taylor Review does not go far enough in addressing tax issues

5m Alia Shoaib, Reporter
Does the Taylor Review sufficiently address the gig economy?

Corporate Tax Does the Taylor Review sufficiently address the gig economy?

5m Alia Shoaib, Reporter
HMRC tax evasion assistance requests double in five years

Corporate Tax HMRC tax evasion assistance requests double in five years

5m Emma Smith, Managing Editor