13th July 2011
HM Revenue & Customs (HMRC) has been told to take a “more adult” approach to contractor tax and agents.
Andrew Meeson, the new president of the Association of Taxation Technicians (ATT), explained that the tax body is currently ‘obsessed’ with controlling agents and unless it forms a “closer, more adult rapprochement between HMRC and tax agents” it risks wasting the opportunity for change.
Speaking at the ATT’s annual general meeting, Mr Meeson added that the agency community is HMRC’s “last best hope of keeping the UK tax system on the rails” and called for the two groups to work together.
Meanwhile, the president criticised the fact that new contractor tax regulations and other changes have been rushed in. “The political will seems to be there for a more sensible and productive relationship between the Treasury and the agent community, as it has become obvious to ministers that hastily introduced legislation, which has not been adequately tested against the expertise of the profession, is not the way to proceed,” he remarked.
The comments follow news that HMRC is drawing up gateway tests, which would be used to determine a contractor’s liability for IR35.
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