Stephen Herring argues the case for a more radical approach to tax reform after a lukewarm Autumn StatementThe overarching priority for the elimination reduction of the structural fiscal deficit is accepted by most Institute of Director (IOD) members and it is understood that substantial tax cuts, which are not capable of being matched by equivalent public spending cuts, are simply not going to happen over the next few years. This ought not to mean, however, that the Chancellor does not have scope for tax reforms, tax simplification and affordable tax cuts focussed upon business and thereby accelerating economic growth, boosting employment and, indeed, contributing to the reduction of the fiscal deficit.

Understanding the scale of a potential taxpayer mistake is fraught with difficulties as HMRC takes a tough line, says Karen EcksteinPractitioners will be aware that the regime for the imposition of penalties for tax omissions changed with effect from 2009. Now, when HMRC considers the level of a penalty to apply to a particular omission, not only is the quantum of the tax omitted taken into account, but the taxpayer’s behaviour determines the category into which it falls. The category of behaviour determines the level of penalty to be imposed.

With effect from 7 January 2013, those in receipt of child benefit have had as a matter of course to consider the new High Income Child Benefit Charge (HICBC), where one member of a household’s income exceeds £50,000