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Take a deep breath! The decision to postpone the fiscal statement to 17 November and to convert it into a full autumn statement is a wise one. You don’t need me to tell you that the events of the past few weeks have shown that wisdom and haste are seldom allies when it comes to tax decisions. The last thing we need now is for tax announcements to blow up in the new chancellor’s face: caution should certainly be the watchword.
There are many different perspectives on how the tax system can be used to encourage economic growth. Much of the discussion has, understandably, been about rates, but the position is more nuanced than that. Do we have the right structures in place for individuals and companies to invest in new growth enterprises? Is the balance right between support for investment in plant and investment in people? How should capital and wealth be taxed? What powers does HMRC actually need to administer a modern tax system in a way which supports honest taxpayers but prevents abuses? These are all big questions which need careful thought and considered judgment.
At the time of the 2022 Spring Statement, the chancellor (if you struggle to remember who was occupying the office at the time I’m not surprised – it was none other than our new prime minister) published a ‘tax plan’. Many were disappointed at the lack of detail which it contained and some of it now reads like ancient history. A new tax plan is needed – one which really starts to tackle some of these fundamental questions. Let’s have some serious grown-up discussions about how we want our tax system to work.
If you do one thing...
Review the updated HMRC guidance on obtaining certificates of UK residence in its International Manual at INTM162160 (tinyurl.com/intm162160).
