Wasting no time in making members’ voices heard, the CPAA has addressed a letter to the newly elected Prime Minister, Sir Keir Starmer, to raise critical issues affecting the accountancy profession and call for change. The letter outlines key concerns and suggestions for reforms, all aimed at improving the industry.
In the run up to the election, the Labour party positioned itself as “a voice for business”, pledging to “give businesses a formal voice in economic policy-making.” Rachel Reeves MP has gained the historic appointment as the first female Chancellor of the Exchequer, and Jonathan Reynolds MP as Secretary of State for Business and Trade – both of whom have held hundreds of meetings with businesses to gain an understanding into the experiences, ambitions and challenges facing UK businesses at the moment.
The CPAA is keen that those in positions of power understand the needs of practicing accountants, now and in the future. The letter to the Prime Minister highlighted a number of key issues.
1. HMRC service levels: The CPAA has expressed concerns about the poor service levels provided by HMRC, which is not currently fit for purpose and does not represent value for taxpayers’ money. The association calls for greater investment, better staffing and technical training to ensure knowledgeable support for accounting professionals and their clients.
2. Agent regulation: The current lack of strict regulation for tax agents registered with HMRC poses risks. The association advocates for mandatory registration with professional bodies, ensuring agents meet competency and professional standards. However, any new regulations should not stifle the diversity of the current market for professional accountancy qualifications or create greater burdens.
3. Quarterly reporting (MTD): A major concern is the burden of quarterly reporting under the MTD for Self-Assessment. The association argues that this requirement adds unnecessary complexity and costs for small businesses and individuals, particularly those below the VAT threshold. They urge the Government to exempt certain groups from this requirement and reduce the frequency of reporting.
4. Tax simplification: The CPAA also calls for a simplification of the UK tax system, which is increasingly complex and onerous. Simplification would help taxpayers navigate their obligations more easily and reduce errors – now is the right time for a more straightforward tax system. The letter comes at a crucial point, as the newly formed Government decides and defines its priorities and first tranche of policies. With a new administration in place, the CPAA sees an opportunity to influence policy changes that could streamline the tax system and provide better support for accounting professionals and their clients.
By addressing these issues promptly, the Government can improve public trust in HMRC, reduce the administrative burdens faced by businesses, and ease the pressures on accountants. As the Prime Minister begins his term, the CPAA hopes these proposed reforms will be taken into consideration, fostering a more efficient and supportive environment for accountants.
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