The 2024 Autumn Budget

The Budget was held on 30 October, just as this monthly report went to press. On the day, the faculty produced a number of news items on changes that were announced, and on 1 November, the faculty presented its Budget webinar. The faculty will publish further insights on the changes as we digest the detailed supporting papers. All ICAEW Budget analysis and comment can be accessed from ICAEW’s Budget hub.

Engagement with HMRC

During the month there was a meeting of HMRC’s representative bodies steering group. Matters discussed included an update on HMRC service levels, which appear to show an improving picture following the increase in staff numbers manning the helplines; the latest developments in the design of the Making Tax Digital system; and the progress being made in the beta testing phase.

Now that the new government has settled in, the faculty’s regular meetings with various senior members of HMRC’s teams has restarted. During the month we held meetings with the directors of HMRC’s intermediaries team and personal tax policy. Matters raised included: service levels; the problems being caused by HMRC’s checking of agent codes, and the status of the exercise; the next steps in the regulation agenda; how the tax simplification agenda might be progressed; and the scope for further consideration of the taxation of work.

HMRC service levels

As reported in previous months, ICAEW and the Chartered Institute of Taxation (CIOT) are working on a joint project to produce an evidence-based report on how member firms are finding interacting with HMRC, focusing on the telephone and webchat services. The formal data gathering has now been completed and our attention is focused on two forthcoming virtual roundtables with participating firms, ahead of the preparation of a final report that is due for publication in December 2024. 

We are still analysing the data that was obtained but it has already highlighted some important points, including the continued difficulty in resolving issues even when members do get through to speak to HMRC staff. I would like to thank again all the member firms that took part in the project and have helped to provide much useful data.

Representational and policy work

With support from ICAEW’s parliamentary team, the faculty prepared a briefing note on the technical and operational challenges of removing the VAT exemption for education from private schools from 1 January 2025. The note was shared with Bradley Thomas MP ahead of a Westminster Hall debate he had organised on the subject. 

The faculty has also assisted ICAEW’s healthcare community in respect of continued difficulty with the McCloud pension remedy and its impact on healthcare professionals.

Raising standards, regulation and PCRT

The faculty held meetings with HMRC on continued efforts to improve processing and compliance with regard to claims for research and development (R&D) tax relief. Faculty staff have also been in discussions with fellow PCRT (Professional Conduct in Relation to Taxation) bodies about how the changes to the IESBA code on tax planning might be reflected in the PCRT and also whether the code needs amendments to reflect the growth of AI – both of these discussions are ongoing.

Tax Faculty meetings

During the month there were meetings of the Tax Faculty Board, the Tax Policy and Reputation Committee and the VAT and Duties Committee 

Tax representations

ICAEW Representation 70/24: Business Tax Roadmap

ICAEW Representation 71/24: Consultation on tribunal decision procedures

ICAEW Representation 72/24: Update of HMRC capital allowances guidance

Faculty webinars, events and podcasts

On 3 October, a team from Forvis Mazars presented a webinar on R&D tax relief: what you need to know. Topics covered included the merged scheme, R&D intensive businesses, HMRC’s approach to compliance, and the latest information requirements. The presentation concluded with consideration of the related area of the patent box regime. The webinar was moderated by the faculty’s business tax team of Richard Jones and Angela Clegg. 

On 16 October, ever-popular presenter Ian Holloway, payrolling benefits and expenses consultant and member of the faculty’s Employment Taxes and NIC Committee, presented the latest faculty webinar on Payroll benefits and expenses. Ian covered the important changes that are taking place to the payrolling of benefits in kind, which is currently voluntary, but which becomes mandatory from April 2026. The webinar was moderated by the faculty’s employment taxes manager, Peter Bickley. 

Our monthly podcast series The Tax Track continues to gather new listeners and get good feedback and engagement. In the latest episode, faculty staff Stephen Relf and Ed Saltmarsh are joined by special guest Ruth Corkin to discuss why VAT is complicated, and what could be done to make it simpler.

Other events

On 8 October, Senior Technical Manager Caroline Miskin joined members of ICAEW’s practice team for the latest quarterly Tax in Practice webinar. Topics covered included developments of HMRC systems and processes; the implications of the latest government announcements; and a summary of essential resources available to support your practice.