Chartered Institute of Taxation:

Chartered Institute of Taxation: ‘Taxpayers’ Charter’ an important step forward

Chartered Institute of Taxation: ‘Taxpayers’ Charter’ an important step forward

The Chartered Institute of Taxation (CIOT) has welcomed the launch of the HMRC Charter (dubbed the ‘Taxpayers’ Charter’).

The Charter, which was legislated for in this year’s Finance Act, sets out how taxpayers can expect to be treated by HMRC, including being treated even-handedly and with respect, receiving clear explanations of rules and having mistakes put right quickly, as well as many of their rights, including the ability to appeal against a tax assessment.

John Whiting, CIOT Tax Policy Director, who spoke alongside the Financial Secretary to the Treasury, Rt. Hon. Stephen Timms MP, at last night’s Charter launch event, commented:

“The Charter is an important step forward in relations between taxpayers and the taxman and will help people in their dealings with HMRC. It is a key signpost and safeguard for taxpayers, particularly for those who do not have an adviser.

“The Chartered Institute of Taxation has been very active in calling for a Taxpayers’ Charter and we are delighted that the final Charter reflects many of our proposals for what it should include. The first draft of the Charter was deeply disappointing and wholly inadequate but HMRC deserve credit for listening to representations from ourselves and other tax professionals and producing a much improved final text.

“Implementation of the Charter is crucial. I am delighted that the Financial Secretary has shown his own commitment to the Charter by personally launching it. It is important that it is properly publicised throughout HMRC, among tax advisers and among taxpayers generally. The CIOT are committed to playing our part in this.”

The Low Incomes Tax Reform Group (LITRG), the initiative of the CIOT to give the unrepresented taxpayer a voice, played an important part in the development of the Charter. The Chairman of LITRG, John Andrews, said:

“The people who need the most protection against less than perfect service from HMRC are those who cannot afford to employ a tax adviser. I am pleased that the new Charter has strengthened their ability to recognise what they can expect to receive by way of fair treatment.”

“The Government’s commitment to regular review of the Charter is welcome. I believe that there is room to strengthen the Charter in future, such as including an obligation on HMRC not just to answer people’s questions, but to be proactive in offering explanations and identifying people who have paid overpaid tax.”

John Whiting and John Andrews have both been asked to join the Charter Advisory Committee which will have oversight of the Charter’s implementation and evolution.

Notes

1) The Chartered Institute of Taxation (CIOT) is a charity and the leading professional body in the United Kingdom concerned solely with taxation. The CIOT’s primary purpose is to promote education and study of the administration and practice of taxation. One of the key aims is to achieve a better, more efficient, tax system for all affected by it – taxpayers, advisers and the authorities.

The CIOT’s comments and recommendations on tax issues are made solely in order to achieve its primary purpose: it is politically neutral in its work. The CIOT will seek to draw on its members’ experience in private practice, Government, commerce and industry and academia to argue and explain how public policy objectives (to the extent that these are clearly stated or can be discerned) can most effectively be achieved.

The CIOT’s 14,900 members have the practising title of ‘Chartered Tax Adviser’.

2) The Low Incomes Tax Reform Group is an initiative of the Chartered Institute of Taxation to give a voice to the unrepresented. Since 1998 LITRG has been working to improve the policy and processes of the tax, tax credits and associated welfare systems for the benefit of those on low incomes.

George Crozier
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