AAT public affairs and public policy activities: September 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 highlights for September 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.

Latest intervention on late payments

Following a number of public consultations on the thorny issue of late payments, in September the government opened a survey into reform of the Prompt Payment Code.

Although the government finally appears to have accepted AAT’s long standing recommendation to halve the maximum payment terms under the Code (from 60 to 30 days), they are proposing this only applies to small companies, who they are yet to define. AAT has made clear that a 30 day maximum for all companies is simpler, fairer and will be more effective.

Phil also met with the CBI this week to discuss AAT’s views on the matter.

Find out more about this issue on AAT Comment.

Loans for SMEs to be written off?

Speaking to the small business minister as part of an online roundtable organised by the Finance & Leasing Association, Phil asked if he was pushing the Chancellor to write off small business loans as had been suggested by former Chancellor George Osborne a few months ago.

Approximately two thirds of the £38bn bounce backs loan have been lent to over 1m SMEs. Banks predict that between 40-50% of these loans will eventually be written off due to bad debt.

Writing off these debts for all small businesses now would provide a much needed boost for the SME sector, increase investment and productivity and enable a much quicker recovery, which in the long term would better benefit the taxpayer overall.

R&D Tax Credits: data and cloud computing must be included says AAT

Responding to a long overdue consultation on the scope of Research & Development Tax Credits, AAT has firmly stated its desire for data and cloud computing to be included in a widened regime as explained in this AAT Comment article.

VAT reverse charge

The VAT reverse charge in the construction industry has been delayed again but despite some suggestions it will be scrapped, AAT believes this is highly unlikely and explained why in an article for Planning Building & Construction Today.

Companies House reform

Last year the government consulted on much needed reform of Companies House. The government finally published its response in September, after more than a year of consideration. Whilst some essential changes are promised, the government rejected the opportunity to impose limits on the maximum number of directorships, something that AAT had recommended.

Why AAT believes this is a mistake is explained in the following AAT Comment article.

Parliamentary engagement

Engagement with 14 Parliamentarians in September centred on subjects including Freeports, the Budget, the economic impact of Coronavirus, Capital Gains Tax reform and financial education.

Non-Parliamentary engagement

Engagement with 40 external stakeholders took place in September. These included the likes of the Small Business Commissioner, Recruitment & Employment Confederation, HMRC, CBI, TUC and the National Cyber Security Centre.

AAT consultations calls for evidence & inquiry responses

Consultation responses on a wide range of topics were submitted in September.

These included a Call for Evidence from the Office of Tax Simplification on the reform of Capital Gains Tax, a Treasury consultation on extending the scope of R&D Tax Credits to cloud computing and data, tackling the promoters of tax avoidance and tackling the problem of disguised remuneration.

Each of these responses can be viewed on the AAT Policy page here.

Other events, meetings and engagement

• Participated in HMRC Virtual Communications Group meeting.
• Watched Treasury Select Committee evidence session with CIOT, ICAEW and ACCA and subsequently engaged with the Committee Chair, clerk and Parliamentary members.
• Took part in the All Party Parliamentary Group (APPG) on Responsible Business meeting on “Responsible AI” asking questions about the potential for taxing data.
• Attended the IFS/CIOT online lecture regarding CGT reform.
• Watched the MemCom Excellence Awards, winning their Outstanding Achiever 2020 award.
• Attended Labour Party fringe event (online) with the Shadow Chancellor regarding taxation, education and training.
• Watched CBI Webinar where Shadow Chancellor & CBI Director general discussed Coronavirus support for businesses.
• Took part in a CBI webinar analysing the Chancellor’s announcement on a winter economy plan.
• Participated in an online chat with former Labour MP Gloria De Piero and Telegraph sketch writer Andrew Gimson. Gimson said he was “cautiously optimistic” that AAT’s suggestion, that SME bounce back loans be written off, would happen.