HMRC service performance

The latest statistics, for February 2025, were disappointing, as we explained in a recent TAXwire article. We are continuing with follow-up activity on the ICAEW/Chartered Institute of Taxation (CIOT) joint report published in December 2024, including planning when we might repeat the data gathering exercise.

Making Tax Digital

HMRC is very focused on efforts to encourage agents and taxpayers to join the public beta which has now launched following a significant new API release. Caroline Miskin, Senior Technical Manager, Digital Taxation, attended a launch event on 7 April which included an in-person speech by the minister James Murray, Exchequer Secretary to HM Treasury. 

HMRC is reorganising its engagement to focus on implementation, and professional bodies continue to be concerned that we are losing engagement on the outstanding policy and design issues and new issues that will arise. This is somewhat mitigated by the strong relationship that ICAEW has with senior members of HMRC’s Making Tax Digital (MTD) team. The other significant concern is the lack of clarity over what functionality each software product will ultimately offer, making it difficult to choose.

We delivered the MTD Live flagship event on 28 April in Chartered Accountants’ Hall. The day involved HMRC explaining the background and the rules, demos from software suppliers and a panel to share their perspectives of what the changes will mean for accountants and how to prepare your practice. 

Professional conduct in relation to taxation

The Professional Conduct in Relation to Taxation (PCRT) bodies met on 9 April to agree a final draft to reflect changes to the PCRT made to create alignment with the new requirements published by the International Ethics Standards Board on tax planning and related services. The next stage is for each PCRT body to obtain approval via their internal governance processes.

The group also reviewed the new Topical Guidance Helpsheet on MTD with a view to publishing the guidance later this month.

Katherine Ford delivered a joint webinar with the CIOT on PCRT to HMRC staff.

Professional standards and regulation

Two consultations were issued at the Spring Statement that have the potential to affect the tax work undertaken by our members: Enhancing HMRC’s ability to tackle tax advisers facilitating non-compliance and Closing in on promoters of tax avoidance.

ICAEW’s Tax Faculty team have been engaging with our Tax Faculty committees and Board and have been attending roundtables with HMRC on both consultations. The first consultation is only open for a six-week period and has been our primary focus this month.

Representations and TAXguides

The Tax Faculty has published ICAEW REP 30/25 in response to the government’s consultation Reforms to inheritance tax agricultural property relief and business property relief: application in relation to trusts. We have a number of concerns, including that implementation of the reforms will result in greater hardship for business owners who are elderly and in poor health, and that the measure is disproportionate for owners of smaller businesses that exceed the valuation threshold. 

We have also published ICAEW REP 29/25, setting out our view on the government’s consultation on changes to HMRC statistics publications.

Meetings with HMRC

During the month we attended a number of meetings with HMRC, some in conjunction with other representative bodies. These included: the Agent Digital Design Advisory Group; the Virtual Communications Group; and the Representative Bodies Steering Group. 

Tax Faculty meetings

Meetings held during the month included: the Tax Policy and Reputation Committee, the Compliance and Investigations Committee; the Employment Taxes and National Insurance Contributions Committee; the VAT and Duties Committee; and the Business Tax Committee. 

Faculty webinars, events and podcasts

Our monthly podcast series The Tax Track continues to gather new listeners and receive good feedback and engagement. The latest episode was on the topic of VAT – the challenges it poses for businesses and their advisers, and what recent developments say about the likelihood of reform. It was hosted by Stephen Relf, Technical Manager, with contributions from Ed Saltmarsh, Technical Manager, VAT and Customs, and Stephen Dale, Chair of ICAEW’s VAT and Duties Committee.