A message from faculty head, Frank Haskew
Thank you for your membership in 2021. We really value you support and hope you have found being a member of the Tax Faculty worthwhile.
2021 was overshadowed by the continued impact of the pandemic. We started the year in another lockdown and the Government had to continue with its COVID-19 support schemes. Once again, our members have been on the front line helping to support UK businesses through this time of crisis and, here in the Tax Faculty we continued to provide much needed help to members through out helpsheets, guidance notes and webinars.
As we moved into the summer and the crisis eased, the Government began to look at the future announcing the extension of making tax digital for income tax self assessment (MTD ITSA) and a raft of other policy announcements. MTD ITSA, which was due to start in April 2023, was deferred by a year. While this was welcome, the need for quarterly reports remains a major concern. In 2022 we will be providing a wealth of practical help and support on MTD ITSA, including more information on what software choices will be available.
HMRC also embarked on a new project to bring tax administration into the digital age. This project is likely to result in far-reaching changes to how the tax system is managed. It is clear that the Government wants to obtain taxpayer data and payments more quickly and bring the filing of tax returns and payment closer to real time. We are likely to see many developments in these areas in 2022 and we will share them with you as they arse, accompanied by our expert insights and commentary.
Among other new announcements was the proposed abolition of the basis period rules which, although in theory a simplification, is likely to add complexity and uncertainty for those businesses which do not adopt a tax year end. There are also complicated transitional relief rules and we will be providing support to members as they navigate these changes.
1 January 2022 marks the end of a transitional easement so that all imports into the UK must now be accompanied on entry by full customs declarations. We will continue to provide members with help and support in what is becoming an expanding area of our members' work. We will also help members to understand the many benefits which the new freeports initiative will offer.
Taxpayers need help to ensure that they make the right choices and comply with their responsibilities. The need for professional tax advice has never been more important and the responsibility on our members to give good tax advice continues to increase. Whatever happens in 2022, we look forward to supporting you. So please renew your membership and let the Tax Faculty guide you through the forthcoming changes to the UK tax system.