AAT public affairs and public policy activities: January 2020

Every month AAT highlights some of the key Public Affairs & Public Policy activities undertaken on behalf of our 140,000 members.

Below you will find some key highlights for January 2020.

If you would like any further information about any of these issues, please contact Phil Hall, AAT Head of Public Affairs & Public Policy via twitter or via email.

Minimum Wage, Maximum Returns

The Government has announced a record increase in the minimum wage, effective from April 2020.

The new rates still fall well below the Living Wage Foundation rates of pay for which AAT gained accreditation long ago but are certainly a big step in the right direction. Back in 2017 most AAT members (70%) indicated they would prefer to see Living Wage Foundation rates of pay adopted instead of the current statutory Living Wage.

Our comments on the issue were widely covered in the accountancy and HR media such as Personnel Today and People Management and an article in the reward industry’s market-leading Employee Benefits.

Additions to AAT Tax Panel

Sir Edward Troup, former Executive Chair of HMRC, has agreed to join the AAT Tax Panel, as has Ruth Hopkinson, Head of Tax Strategy at HMRC and Daniel Lyons, Tax Partner at Deloitte.

AAT Payroll Panel

A reinvigorated AAT Payroll Panel met in January. New members including the Global Payroll Director from Aon, Head of Payroll at Harrods and Head of Payroll at PPHE Hotel Group joined regulars, including AAT licensed members and HMRC, to discuss a range of payroll related issues and to hear a presentation and participate in a Q&A with the Deputy Director of Policy at IPSE, on the thorny subject of IR35.

For more information about the payroll panel please get in touch.

High house prices make Stamp Duty switch more attractive

AAT proposals to switch Stamp Duty liability from the buyer to the seller were again highlighted in the Evening Standard following news that the average London house price is now £600,000.

Legislation based on AAT recommendations introduced to House of Lords

Labour Peer Lord Mendelsohn introduced a Private Members Bill to tackle late payments, based largely on AAT’s longstanding recommendations to encourage prompt payments, especially to small business.

The news was covered extensively in the media, including national media (The Times) and the accountancy press – Accountancy Age, Accountancy Daily, Accounting Web, Payroll Plus. A wealth of construction industry titles also covered the story – from Scaffolding Magazine and Roofing Today to Construction News and Planning, Building & Construction Today. It was also covered by the payments press, Computer Weekly and some local trade media such as Marketing Stockport too.

Pleasingly, the story was also covered by more than 500 independent accountancy firms who added the story to the news sections of their web sites including references to AAT views on the subject.

The legislation is unlikely to be given enough Parliamentary time to pass but it creates additional pressure on the Government to take more meaningful action in this area, as does the large volume of media coverage. Similarly, it continues to ensure that AAT remain at the forefront of this important campaign.

Online VAT fraud

AAT has urged the Government to make online platforms such as Amazon, eBay and Etsy liable for the collection and remittance of VAT, instead of individuals and small businesses.

As well as helping small businesses, this will save £billions in lost revenue and bring the UK back into line with our international competitors. Adam Harper’s AAT Comment piece provides further detail. The issue was also covered in one publication, City AM.

Various MPs, members of the House of Lords and a variety of other stakeholders have positively responded to AAT’s views.

Workers & Technology

In the summer of 2018, AAT submitted a comprehensive response to the Commission on Workers & Technology call for evidence on the future of work.

Last month, AAT was invited to participate in a roundtable event with representatives from Facebook, BT, Dell, HSBC and HP to discuss the work of the Commission and AAT’s response was singled out for praise due its “incredible usefulness”. The Commission will publish its findings later this year.

Tax Returns return

Further to December 2019 media coverage of AAT’s advice on submitting tax returns, more coverage was secured on the same subject in January.

In a similar vein, HMRC last month released a list of bizarre excuses for failing to submit a tax return – together with some odd expense claims. This included “my mother-in-law is a witch and put a curse on me” and an expense claim for sausage and chips every day for 250 days! It’s worth a read for some light entertainment.

Immigration

On 14 January, the Law Commission published their long awaited 220-page report into simplifying the UK’s immigration rules. There was a reference to AAT and accountant’s certificates (an issue that AAT has now resolved directly with the Home Office), but the main headline was that simplification was estimated to save the taxpayer £70m – a lesson here for tax policy and the ongoing battle for simplification.

Parliamentary engagement

In January, AAT engaged with a dozen Parliamentarians on subjects including late payments, education in schools, apprenticeships and VAT fraud.

AAT consultations calls for evidence & inquiry responses

No consultation submissions have been made in 2020 but to see previous years responses, the AAT consultation response page can be viewed here.

Other events, meetings and engagement

• AAT hosted a regular meeting with policy and public affairs representatives from ACCA, ICAEW, CIPFA and CIMA to discuss areas of mutual interest.

• Adam Harper and I met with three agencies to discuss the issue of unregulated accountants and AAT proposals for reform.

• Participated in a focus group with the Business Growth Bureau.

• Attended a Resolution Foundation event with Paul Mason and Yvette Cooper MP to analyse the General Election results from a Labour Party. perspective and to understand some of the different views about the future of the party.

• Participated in the CBI Business Rates Working Group.