TaxPersonal TaxAngry tax practitioners slam chancellor after being denied tax discounts

Angry tax practitioners slam chancellor after being denied tax discounts

Chancellor Gordon Brown has been warned he will be breaching the Taxpayers Charter if he does not extend provision for £10 discounts to agents who file their clients' tax returns electronically.

The charter stipulates all taxpayers should be treated the same, an aspect that would be broken according to furious tax practitioners unless the discount is offered to agents as well as small businesses and individuals which submit electronically.

Inland Revenue officials have recently published details of the discounts, including discounts for individuals and small businesses – but with no mention of discounted returns filed by agents.

John Whiting, Chartered Institute of taxation vice-president and aPricewaterhouseCoopers tax partner said: ‘This ruling breaches the idea all taxpayers are the same because it is saying to taxpayers if you use a practitioner you are not eligible for the discount.’

He added: ‘Online filing runs the risk of failure if it does not apply to agents as it is more likely they will have the facilities to submit returns electronically.’

The scheme, which begins in April and will last for a year, offers a £10 discount to individuals who submit their return over the internet. A discount of £100 is available to small businesses that file their VAT returns or PAYE end-of-year returns electronically.

Discounts are being offered to encourage the use of the internet by individuals and businesses and according to experts, should produce long-term savings for the Revenue.

Richard Shooter, chairman of the Tax Monitoring Group, said he believed the discount ruling was ‘unfair’ and amounted to a breach of the Charter.He added: ‘The amount of discount offered is peanuts and has no credibility because it doesn’t give anything to agents. While according to the Revenue it may not have the facilities in place to be able to actually give the discount until January next year.’

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