Tax Day 2021: what was it and what does it mean for your business

This year, the Treasury has taken a different approach to fiscal events, opting to set out its tax and spending plans in the Spring Budget, followed by a separate Tax Day to set out the government’s future plans for tax policy.

What did we see?

The government published over 30 consultations across a We responded, noting that Tax Day offered a guide to government priorities for a simpler, modernised tax system.

The CBI has now prioritised three consultations to respond to, that will have a broad impact across the UK economy:

• Tax administration framework review – deadline 13 July
• Notification by large businesses of an uncertain tax treatment - deadline 1 June
• R&D consultation from budget - deadline 2 June

We also welcome member representations regarding the Transfer Pricing documentation and timely payments consultations, for which we will also be considering how best to ensure the CBI voice is heard.

These consultations are a pivotal opportunity to influence government decision-making on tax, with government expected to outline its future direction of travel on these matters at an autumn budget later this year.

What didn’t we see?

Firms will be disappointed not to have seen a greater sense of direction from government on what it wants to achieve with the tax system or a strategic set of priorities around future UK tax policy. In our budget submission, the CBI called on the government to publish a strategic tax roadmap for the UK’s post-pandemic tax system, to give businesses the certainty and predictability businesses need to invest in the UK. This roadmap should commit to specific rates of taxation in some areas and provide an indication of government’s reform priorities, and how the tax system can help the UK achieve key policy aims such as net zero and levelling up.

Firms were also waiting with bated breath to see more on greening the tax system – on the back of a recent CBI report setting out key principles to ensure the tax system can be leveraged to accelerate progress towards the UK’s net zero target.

Finally, firms were calling for progress towards fundamental reform of the unfair and outdated business rates system to unlock business investment in the economic recovery – and will be awaiting further action on reform later this year.

We’ll be continuing to feed these fundamental business asks into the Treasury and HMRC in the coming months.

Next steps

If you would like to feed into the CBI’s consultations responses on the above reviews or to provide comments on the tax measures from budget or tax day, please get in touch via [email protected]