Current Matters

 HMRC’s performance update for October to December 2022 shows customer service standards for dealing with phone calls and correspondence are still not being met. The ICAEW continue to monitor the performance levels of HMRC.

 In 2016 measures were introduced to reduce the numbers of taxpayers required to submit a self-assessment tax return. These reforms introduced the dividend allowance set at £5,000, which meant dividends were tax free up to this limit. This was reduced to £2,000 for 2018/19 tax year to be reduced to £1,000 from 2023/24 and finally £500 from 2024/25. Consequently, many more individuals will be required to file a tax return.  Even worse the failure to increase the Inheritance Tax nil rate £325,000 no increase since 2009. The list is endless.

 A matter for concern was divulging details of the tax enquiry by someone at HMRC into the tax affairs of Kwasi Kwarteng. All dealings between HMRC and an individual taxpayer are strictly confidential. Tax enquiries are a matter of Civil Law. The only occasion when the name of the taxpayer is publicised is if HMRC bring a criminal prosecution.