AAT public affairs and public policy activities: December 2020

Every month AAT summarises some of the key Public Affairs & Public Policy activities undertaken on behalf of our members.

Below you will find some key highlights for December 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.  

Government urged to help those struggling to meet self-assessment tax deadline

An increasing number of AAT licensed accountants highlighted the immense pressures they were under to meet the usual 31 January self-assessment deadline. AAT recognised the problem and proposed three potential solutions to the senior leadership team at HMRC.

More than 1,000 individual accountancy firms highlighted AAT’s actions, which are summarised in this AAT Comment piece and were duly noted by a range of publications from trade press such as Contractor Trap and PQ Magazine to leading national media (Financial Times) and some less well-known publications from Poland and the China Council for the Promotion of International Trade. 

Shortly before Christmas, HMRC Chief Executive Jim Harra confirmed to AAT that they would not extend the deadline but effectively agreed to waive penalties to anyone affected by Coronavirus. HMRC confirmed that in the event that someone who has been unable to file on time receives a penalty notice, they or their agent will be able to get this cancelled easily by contacting HMRC. HMRC also confirmed they will give customers and their agents more time by extending the penalty appeal period to 3 months. A good result for AAT licensed accountants and their 400,000+ clients.

£100m annual crime levy opposed by AAT

Government plans to impose a new £100m annual economic crime levy on a range of professions from accountants to estate agents were criticised by AAT in recent submissions on the subject to both HM Treasury and the Treasury Select Committee. This opposition was further highlighted in an AAT Comment article in December.

The article attracted considerable attention. In addition to thousands of visits, the piece prompted media coverage in The Accountant and PQ Magazine as well as London Loves Business, Risk Screen, International Accountant Gazette, International Accounting Bulletin, The Negotiator and the Ukraine Chamber of Auditors & Accountants.

Second Homes Loophole

AAT has long been concerned about this loophole, which means council tax is avoided by registering the second home as a business and then business rates are avoided by claiming small business rates relief. It’s an issue that has been brought into sharp focus by additional Coronavirus assistance being channelled towards the same group of second home owners. The Government is aware of the issue and even consulted on it a few years ago but no action has been forthcoming.

The issue is explained in more detail in this December AAT Comment piece.

Last month also saw more than half a dozen MPs and Peers, from the Conservative, Labour, Liberal Democrat and Plaid Cymru parties, express an interest in AAT’s recommended solutions.

Bounce Back Loan Scheme (BBLS)

In mid-December, Parliament’s Public Accounts Committee launched a scathing attack on the Government’s Bounce Back Loans Scheme. This presented AAT with another opportunity to highlight our belief that the one million+ loans made to British SMEs should be written off. These account for around 66% of all BBLS lending and the Government predict up to 60% will be written off anyway.

City A.M, Inside Media and Accountancy Today, Business Money and Credit Connect covered the story, which built upon Labour and SNP support for the AAT suggestion when first publicised back in October.

Stamp Duty

AAT’s position on the new Stamp Duty surcharge for overseas residential property investors was referenced by Labour MP and Treasury Select Committee member Siobhain McDonagh in Parliament during a House of Commons debate on homelessness, again when quizzing members of the OBR (Office of Budget Responsibility) on the subject at a Treasury Select Committee evidence session and during the Commons Christmas adjournment debate.

In addition, Parliamentary Questions to the Chancellor were tabled on the subject, to which the Financial Secretary to the Treasury responded.

Parliamentary engagement

Engagement with almost a dozen Parliamentarians in December centred on subjects including the Second Homes Loophole, Capital Gains Tax and economic crime.

Non-Parliamentary engagement

Engagement with over 40 external stakeholders took place in December. These included the likes of the CBI, FSB and BCC, HMRC, the Institute of Government  and Durham University on issues ranging from the economic crime levy to Sustainability Reporting.

AAT consultations, calls for evidence & inquiry responses

A response to the IFRS consultation on Sustainability Reporting was made. This and other responses can be viewed on the AAT Policy page here.

Other meetings, events and engagements

• Adam Harper took part in the regular Representative Body Steering Group (RBSG) meeting for professional bodies.
• I participated in the regular HMRC Virtual Communications Group (VCG).
• Adam Harper and I met with HMRC officials to discuss the future regulation of the accountancy profession and raising standards in the tax advice market.
• Represented AAT at the regular trade bodies roundtable hosted by the Federation of Small Business (FSB).
• Attended CBI Government Affairs Network.