Finance Bill Committee to hold first evidence sessions on income tax basis period reform and uncertain tax treatment

These evidence sessions will be streamed live on Parliament TV.

The first session will begin at 4.15pm. Giving evidence will be:

• Susan Cattell, Head of Tax Technical Policy, Institute of Chartered Accountants of Scotland
• Richard Jones,R Business Tax Manager, Institute of Chartered Accountants in England and Wales
• Emma Rawson, Technical Officer, Association of Taxation Technicians
• Jason Piper, Head of Tax and Business Law, Association of Chartered Certified Accountants.

The second session will begin at 5.15pm. Giving evidence will be:

• Sharron West, Technical Officer, Low Incomes Tax Reform Group
• Richard Wild, Head of Tax Technical, Chartered Institute of Taxation.

Topics the committee is likely to cover in these sessions include:

• The importance of reforming the basis period rules before the introduction of Making Tax Digital (MTD) for income tax.
• If the Government’s deferral in the start date for MTD allows sufficient time for businesses to prepare for this change.
• What needs to happen over the next 18 months to ensure that businesses are adequately prepared.
• Which, if any, particular trades or professions the proposal has an adverse impact.
• The effectiveness of the Government’s consultation on basis period reform.
• How awareness of this change, particularly among unrepresented taxpayers, can be raised.
• If there is sufficient capacity among agents, and bodies such as Low Incomes Tax Reform Group and Tax Aid, to advise taxpayers.
• If basis period reform is genuinely a real simplification.

The committee’s inquiry on the draft Finance Bill is focussing on two areas of the draft Bill:

• proposals for income tax basis period reform
• notification by large businesses of uncertain tax treatment.

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