The ICAS public voice – tax administration post-covid
As we begin to emerge from Covid-19, a key strand of the public policy work undertaken by ICAS relates to tax administration.
ICAS has a public interest remit, a duty to act not solely for its Members but for the wider good. From a public interest perspective, our role is to share insights, shaped and informed by the views of ICAS Members, into the many complex issues and decisions involved in tax system design, and to point out operational practicalities.
ICAS plays its part in tax across the whole of the UK. ICAS contributes to the development of UK tax policy and tax administration and, being headquartered in Edinburgh, we also take a leading role on Scottish taxes.
Policy reform – UK tax administration
The Covid-19 pandemic has highlighted which parts of the tax system are working well and the benefits of (more or less) real time PAYE data. It’s also highlighted which parts require improvement, such as the tax processes for the self-employed, and a desire to maximise the benefits of a digital world.
There is an appetite in government to drive this forward; hence, there have been a number of calls for evidence about how to modernise tax administration. In response, ICAS has had three strands to its work:
- ICAS has urged the UK Government to improve tax administration in ten key areas in our report, Tomorrow’s Tax Administration. We call for basic tax administration which works properly for everyone who has to engage with it, increased resources for HMRC and funding to tackle patchy digital systems.
- We have responded to a series of HMRC Calls for Evidence on tax administrative matters – Tax Administration Framework Review, Timely Payment and Basis Periods – which are summarised in our commentary ‘Tax Administration – where’s it going?’
- We continue to engage with HMRC about service standards for agents and taxpayers and assessed HMRC’s performance against the standards in the HMRC Charter.
Effective tax administration is essential to collect revenues and to enhance public support and trust – one reminder from the pandemic is that if monies are needed to provide support during a national emergency, taxes also need to be paid into the system to fund that support.
Policy reform – Building a better tax system in Scotland
ICAS, along with the Chartered Institute of Taxation (CIOT), issued Building a Better Tax System and we continue to engage with the relevant Scottish institutions to input to the Scottish Government’s tax policy framework programme.
In addition, ICAS has published an updated version of the ICAS Guide to Scottish Taxes, a concise introductory guide to the different taxes that can be raised in Scotland.