Another busy week in Tax
There is never a dull moment in the Tax World and that is true this week with a significant announcement from HMRC at the start of the week, and before I knew it was time to head on out of the office with the Tax Matters team to the highlight of the year for Tax advisors and Accountants anyway Accountex 2024.
I almost forgot to mention that the sun also decided to join us, has the summer finally arrived? Grab your coffee and favourite biscuit and let's begin.
A day out of the office.
The exhibition was held at the Excel Centre in London and was an unmissable event for personal tax professionals. The conference spanned two days of intensive learning, insightful presentations, and invaluable networking, setting a high standard for future industry gatherings. Here’s a comprehensive look at the highlights from a personal tax perspective, with a special mention of our firm’s team who attended and contributed to the event's success.
Networking at Accountex 2024 was a standout feature, especially for personal tax professionals. The event brought together over 10,000 attendees, including tax advisors, accountants, and financial planners. Our firm's team, including Carly Smith, Steph Usher and Jon Golding took full advantage of the dedicated networking lounges and meet-and-greet sessions. These interactions provided opportunities to discuss client challenges, share best practices, and explore collaborative opportunities. This vibrant exchange of ideas is essential for staying current in the fast-evolving tax landscape.
The keynote sessions were particularly enriching, offering deep dives into topics highly relevant to personal tax specialists. The must-see seminar of the event was presented by James Butterworth – Property Tax Pitfalls.
· Trading versus investment and change of intention
· Ownership of trade premises – personal or corporate?
· investment property – personal v company ownership
· property business incorporation and the impact of HMRC Spotlight 63
· IHT/trusts planning for the family investment company
The team found these sessions invaluable, providing insights that will directly benefit our clients and enhance our service offerings.
The workshops and seminars at Accountex 2024 were designed to address the specific needs of personal tax professionals. My favourite was Advanced Tax Planning Strategies: This workshop covered sophisticated techniques to maximise client savings and ensure compliance with the latest tax regulations.
The exhibition floor was a hub of activity, featuring over 295 exhibitors, many of whom showcased products and services designed for personal tax professionals. As you may expect like in every industry AI has also arrived in our sector - Personal Tax Advisory. There are new products demonstrating how artificial intelligence can assist in identifying tax-saving opportunities and ensuring compliance.
All the discussions at the exhibition underscored the importance of staying abreast of technological advancements and regulatory changes to remain competitive. Our team found these sessions particularly forward-thinking, providing a glimpse into the future of personal tax.
Accountex 2024 was a resounding success, providing personal tax professionals with crucial insights, practical knowledge, and extensive networking opportunities. The team, played an active role in this premier event, bringing back valuable information and connections that will benefit our clients and enhance our service offerings. The event highlighted the dynamic nature of the personal tax sector, offering both current practices and future possibilities. Whether you are a seasoned tax advisor or new to the field, attending Accountex 2024 was invaluable for staying ahead in the profession.
I am already looking forward to Accountex 2025.
Jon Golding, Carly Smith, Jonathan Reeves and Steph Usher
£51 Million to fix the phone lines
The Treasury announced today new ring-fenced funding to help HMRC’s phone lines meet service standard targets.
This extra funding follows HMRC's recent U-turn on plans to permanently restrict, and in some cases close, taxpayer self-assessment, VAT, and PAYE support lines. The tax authority halted its plans just 24 hours after strong backlash from stakeholders, taxpayers, and professional bodies.
When HMRC chief executive Jim Harra was questioned by the Treasury Select Committee about the plans to close helplines, he stated that the tax authority lacked the funding to deploy more helpline resources. The issue has been exacerbated as more individuals have been pulled into the tax net due to inflation and fiscal drag, while HMRC’s resources have been constrained.
In June of last year, HMRC’s Angela MacDonald told the Treasury Select Committee that the decision to adopt a seasonal telephony model was due to the “challenging level of efficiencies required by our spending review 2021 settlement,” which provided only limited funding for enhancing digital services.
The Treasury noted in a press release that HMRC's budget has increased by £900m over the current Parliament, from £4.3bn in 2019/20 to £5.2bn in 2024/25.
In a statement, HMRC’s Harra emphasised the Revenue's commitment to expanding online services and encouraging customers to use them where possible but acknowledged that this transition must proceed at a pace the public is comfortable with.
“This additional funding will enable us to improve our helpline service for those who need to speak to us – including the vulnerable and digitally excluded – making sure they get the support they require,” Harra said.
HMRC estimates that two-thirds of self-assessment calls can be handled online. While the extra funding will support helpline services, HMRC remains focused on its long-term strategy of becoming digital by default and directing taxpayers to use resources on gov.uk and the HMRC app.
Financial Secretary to the Treasury Nigel Huddleston stated: “People sometimes think that managing their tax is daunting – but it doesn’t have to be, which is why I’m fully committed to providing HMRC with the resources it needs to meet the needs of all its customers.
“Many tasks can quickly and easily be completed online or via the HMRC app, but today’s funding means that everyone can rest assured there will be someone at the end of the phone, ready to speak.”
I for one certainly welcome the announcement although I believe it’s a drop in the options as the issue is much bigger than many appreciate. Although I agree using digital services can be beneficial more and more of us are using these services and calling HMRC is usually a last resort. At the time of writing this, I can confirm that both the last two calls to HMRC agent helpline have taken one hour and fifteen minutes to be answered which is a far cry from the 40 minutes they were suggesting it took on the previous day. The investment is welcome and I have my fingers crossed for significant improvements.
I hope you have enjoyed this edition of my newsletter, and found it both enjoyable and informative, if you have any suggestions or comments then please let me know it is always good to hear from you. In addition to the newsletter, I am also updating the website, so please take a look from time to time to see what is happening.
If I or the Tax Matters team can be of any assistance to you, your family or your friends then please do not hesitate to contact me at 01442 828006 or jreeves@taxmatters.tax