AAT public affairs and public policy activities: July 2021

Every month AAT highlights some of the key public affairs and public policy activities undertaken on behalf of our 140,000 members.

Below you'll find some key highlights for July 2021.

If you'd 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.

AAT members voice support for change to end of tax year

For hundreds of years the British tax year for individual taxpayers has run from 6 April to the following 5 April but this may be set to change: the Office of Tax Simplification (OTS) has confirmed it's investigating the merits of doing so.

More than 580 AAT members responded to our survey on the subject and there was overwhelming support for change, with well over three quarters (83%) wanting a change to either 31 December or 31 March.

31 March is a clear favourite with more than half (53%) of AAT members choosing this date as their preferred option. Very few want to maintain the status quo (11%).

If the government does decide to change the date, AAT would probably support a change to 31 March based on clear member support and because a 31 December year end would present considerable practical difficulties for many firms due to its proximity to the Christmas and new year period.

The OTS is due to publish a report on the issue next month. The issue was covered in more detail in a June 2021 AAT Comment article "Moving the end of the tax year".

AAT Digital Advisory Panel, Tax Panel and Payroll Panels meet

AAT’s three external panels met last month. Each panel consists of approximately a dozen senior professionals from a diverse range of organisations including Harrods, Deloitte, Cass Business School and Airbnb. Each panel also has representation from AAT Licensed Accountants. They meet twice a year to help inform AAT organisational activity.

Topics discussed last month included the long term economic impact of coronavirus (Covid-19), environmental taxes, the performance of HMRC, unregulated advisors, cyber security and digital learning. The Digital Panel received a presentation and enjoyed a Q&A with the Labour Shadow Minister for Digital.

Professional bodies meet to discuss major policy issues

Policy issues including audit reform, unregulated advisors, the pandemic, sustainability and technological developments were discussed at the biannual meeting of STEP, ICAS, ACCA, ICAEW, CIOT, CIPFA, CIMA and IFA.

AAT established these successful biannual meetings back in 2017 and they have helped professional bodies work more closely together on issues that matter to our members.

Parliamentary engagement

Engagement with eight parliamentarians took place in July, primarily relating to a campaign to permanently cut VAT for the hospitality sector, as outlined by Conservative MP Caroline Ansell in her AAT Comment article "A permanent VAT reduction is essential for UK tourism" last month.

Non-parliamentary engagement

Engagement with over 30 external stakeholders took place in July. These included various officials at HMRC, HM Treasury and others on issues including VAT cuts, VAT shifting, CGT reporting and much, much more.

AAT consultations, calls for evidence and inquiry responses

AAT responded to the joint HM Treasury and MCHLG call for evidence relating to business rates and plans to move from five-yearly to three-yearly revaluations. AAT has long called for a move to annual revaluations so this is a step in the right direction.

This and other responses can be viewed on the AAT public policy page.

Other meetings, events and engagements

• We participated in the regular HMRC Virtual Communications Group (VCG).
• We joined the APPG on anti-corruption.
• We attended the APPG on tax reform, an online roundtable with Jesse Norman MP (Financial Secretary to the Treasury).