A horrible mess for some private school parents who paid fees in advance to try to avoid Labour's VAT hike. And it's entirely the fault of the private schools and their associations.

A quick thread on how to avoid VAT successfully, and how the schools didn't.. We warned back in May that private schools were encouraging parents to pay in advance to avoid Labour's VAT hike, but structuring these schemes *really badly*.

We said that, under usual VAT principles, there was a high risk these schemes would fail, and parents *would* end up paying the VAT. taxpolicy.org.uk/2024/05/09/pri…

The Country Land and Business Association says the new £1m cap on agricultural inheritance tax relief will "harm 70,000 farms". That's 1/3 of all farms.

What does the actual data show? Less than 500 farms/year will be pay more tax as a result of this change every year. Possibly as few as 100. Why 500? Because this table shows only 500 farm estates claimed agricultural property relief (APR) of more than £1m in 2022.

Lots of over-the-top coverage right now about the £1m cap on inheritance tax agricultural property relief (APR).

Quick thread: Background: if I'm a landlord with a portfolio of properties, or an investor with a portfolio of listed shares, when I die my estate pays 40% inheritance tax (IHT). Until now, APR meant that agricultural estates were completely exempt from IHT.

What is tax avoidance? How's it different from tax evasion? Why can't we make tax avoidance illegal?

I have an infographic and a thread: There's a *much* longer version of this thread here, with references and links to sources: taxpolicy.org.uk/2024/10/26/wha…

New polling paints an interesting picture of the public's tax-raising priorities, and a depressing picture of the public's understanding of tax and spending.

I have no easy answers, but I do have some rather alarming charts. A longer version of this thread is here, with links to sources: taxpolicy.org.uk/2024/10/26/the…

This chart is a scandal.

Teachers, doctors and others earning fairly ordinary salaries can face marginal tax rates of more than 60%, and sometimes approaching 80%.

Rachel Reeves should reform income tax. Thread: A longer version of this thread is here, with references and links to sources: taxpolicy.org.uk/2024/10/17/ref…

Just updated the "tax longlist" - now 34 ways Rachel Reeves could raise £22bn.

I've tried to cover every serious proposal that's out there. Some I like. Some I hate. But this thread is *long*. The full article is here: , with footnotes, sources, references etc.taxpolicy.org.uk/2024/09/25/the…

If the Government is serious about delivering growth, we need tax reform. Cutting tax or raising tax is an argument for another day. This post, and more in the next few days, are about making the tax system better. Today: corporation tax reform. An expanded version of this thread is here, with links and references: taxpolicy.org.uk/2024/10/14/how…

The Daily Mail just won the right to say Douglas Barrowman has "cocktail-sausage fingers".

And it won the right to say his actions ruined thousands of lives, led to two suicides, and that he lied about his ties to a likely fraudulent tax scheme. Thread. The full story is set out in detail here, with references and links to sources. taxpolicy.org.uk/2024/01/18/bar…

New evidence: the Post Office deliberately designed its compensation scheme to deter postmasters from applying, and minimise the compensation they could claim.

Thread: (Full article here with references and links )taxpolicy.org.uk/2024/10/11/new…

Which MP receives the most donations? Who takes the most foreign trips? We've an interactive map that lets you explore all this and more.

(100,000 people tried out the map when we launched it a week ago; if you missed it, do take a look) You can jump straight to the map here, or read on for examples of how to use it:

We very much welcome feedback and thoughts for improvement.taxpolicy.org.uk/2024/09/24/map…

The Post Office is pushing postmasters to accept £75,000 compensation without legal advice. The Government needs to act quickly to fix this.

Thread: Our article on this, with copies of Post Office correspondence is here: taxpolicy.org.uk/2024/10/01/the…

Just published the "tax longlist" - 29 ways Rachel Reeves could raise £22bn.

I've tried to cover every serious proposal that's out there. This thread will be *long*. The full article is here: , with footnotes, sources, references etc.taxpolicy.org.uk/2024/09/25/the…

Which MP is the highest earner? Who receives the highest donations? Who takes the most foreign trips? We've just launched an interactive map that lets you explore all this and more. You can jump straight to the map here, or read on for examples of how to use it: taxpolicy.org.uk/2024/09/24/map…

Oh dear. Another high profile tax appeal lost by HMRC due to a simple error.

This time, the story involves a failed accounting "influencer", and HMRC forgetting the obscure technical point that you have to bloody turn up to the bloody hearing. Thread: The case involved tax rebate claims by failed accounting firm Apostle. There have been numerous reports that Apostle made dubious tax rebate claims for its clients. And worse.

The National Audit Office has just slammed HMRC for failing to get on top of small business evasion. We've estimated that this failure is costing the UK £15bn/year. Thread: Longer version of this thread here, with links to sources: taxpolicy.org.uk/2024/06/22/hmr…

The Telegraph and City AM reported in the week that the abolition of the non-dom regime would *cost* £1bn. How fair is that figure? And what will actually happen if the Government abolishes the non-dom regime?

Long thread below - even longer version here: taxpolicy.org.uk/2024/09/08/wil…

This legal challenge is doomed. Nobody has ever overturned a tax in the UK courts or ECHR using on human rights arguments. Not once.

thetimes.com/article/4ac916… If the local council isn’t providing appropriate support for the child’s needs, the answer is legal action against the local council.

The idea it’s easier/faster to *judicially review a Finance Act* is really strange.

PSA: ignore all polls like this unless they follow up with “how much more tax?”

We did, and the answers were pretty amazing.

https://twitter.com/politlcsuk/status/1832097064655732956

This chart blew me away. And these are the people in favour of tax increases AND willing to pay more themselves.

A small mystery. The accounting firm that doesn't exist.

(Spoiler: it leads to a fraud.)

Thread. Turner & Abel's nice looking website says they do R&D tax relief and "You’re paying for qualified finanical (sic) and legal experts".

But they employ no qualified legal or accounting staff.

The UK has lost £bn in R&D tax fraud. £100m of this was thanks to "tax specialist" firm Green Jellyfish.

They hired unqualified creative writing graduates as "technical experts" and gave them briefings claiming that garden design was R&D.

Thread with evidence: An expanded version of this thread is on the Tax Policy Associates website here, with original documents, sources and references. taxpolicy.org.uk/2024/08/25/how…