Skip to main content

International Handbook on Clinical Tax Education: Chapter 12 Marginalised voices Tax and the criminal justice system

International Handbook on Clinical Tax Education
Chapter 12 Marginalised voices Tax and the criminal justice system
    • Notifications
    • Privacy
  • Project HomeInternational Handbook on Clinical Tax Education
  • Projects
  • Learn more about Manifold

Notes

Show the following:

  • Annotations
  • Resources
Search within:

Adjust appearance:

  • font
    Font style
  • color scheme
  • Margins
table of contents
  1. Title Page
  2. Copyright
  3. Contents
  4. List of figures
  5. List of tables
  6. List of appendices
  7. List of abbreviations
  8. Foreword
  9. 1. Introduction
  10. Part I. The tax clinic
    1. 2. A brief history of tax clinics around the globe
      1. 2.1 Key findings
      2. 2.2 Introduction
      3. 2.3 From humble beginnings
      4. 2.4 From east to west
      5. 2.5 From south to north
      6. 2.6 Conclusion
    2. 3. Project administration: how to set up a tax clinic
      1. 3.1 Key findings
      2. 3.2 Introduction
      3. 3.3 The foundations of a clinic
        1. Institutional and/or organisational support
        2. Costs and wider resources
        3. Supervision
        4. Insurance
        5. Data protection
      4. 3.4 Clinic design
        1. Student and supervisor recruitment
        2. Educational design
        3. Integration into community (client recruitment)
      5. 3.5 Concluding remarks
      6. 3.6 Key reading
    3. 4. Rationale: tax support for low-income individuals
      1. 4.1 Key findings
      2. 4.2 Introduction
      3. 4.3 Historical context
      4. 4.4 The tax charities – what they really do
        1. TaxAid
        2. Tax Help for Older People
        3. Tax clinics
      5. 4.5 The tax charities moving forward
      6. 4.6 Access to the tax charities
      7. 4.7 A rationale for low-income taxpayer support: common tax issues faced by those on a low income
        1. Non-tax issues
        2. Tax complexity
        3. Expansion of self-employment
        4. COVID-19
        5. Late registration and tax returns
        6. Other changes in how people are paid
        7. Incorrect PAYE codes
        8. Pension drawdown
        9. Proliferation of umbrella companies and disguised remuneration schemes
        10. Penalties
        11. Bankruptcy
        12. Digital exemption and assisted digital
        13. Working with HMRC to resolve generic tax issues
      8. 4.8 An international call to action
      9. 4.9 Concluding remarks
    4. 5. Rationale: tax and the poverty interface
      1. 5.1 Key findings
      2. 5.2 Introduction
      3. 5.3 Canvassing the tax and wider social issues addressed by the National Tax Clinic Program
        1. Tax and financial literacy
        2. The unmet need for tax advice in Australia
      4. 5.4 Introducing the UNSW Tax and Business Advisory Clinic
      5. 5.5 Benefit of tax clinics: Australia and internationally
        1. Opportunities for further research
      6. 5.6 Concluding remarks
  11. Part II. Tax clinics and our communities
    1. 6. Engagement in the community
      1. 6.1 Key findings
      2. 6.2 Introduction
      3. 6.3 The external stakeholders in CTE
        1. Supporting your local community
        2. Becoming part of the local community
      4. 6.4 Concluding remarks
    2. 7. Listening to our communities: the Community Tax Law Project as an example of a low-income taxpayer community-focused service provider
      1. 7.1 Key findings
      2. 7.2 Introduction
      3. 7.3 What does a community-focused tax clinic look like?
        1. Mission driven
        2. Community understanding and support
      4. 7.4 What populations are you going to serve?
        1. Demographic scope: how do your clients live, work, pray or play?
        2. Resources and limitations
        3. Learn from failures
      5. 7.4 What do these populations need or want?
      6. 7.5 What specifically does your clinic require to meet these needs and wants?
        1. Community partners: you cannot reach everyone by yourself
        2. Social capital: the who, what and when of building your clinic family
        3. Finances: the lights do not stay on with positive thoughts and well wishes
      7. 7.6 How do I fix the problem at the source? Yelling up the chain: advocacy as part of the clinic’s mission?
        1. Community advocacy
        2. Administrative advocacy
        3. Litigation as a venue for change
        4. Governmental advocacy
      8. 7.7 Conclusion
    3. 8. Public education: the Tax Club UNILAG
      1. 8.1 Key findings
      2. 8.2 The context of the Tax Club UNILAG
      3. 8.3 The creation of Tax Club UNILAG
      4. 8.4 An overview of the club’s activities
      5. 8.5 The importance of tax clubs
      6. 8.6 Some challenges faced by the tax club
      7. 8.7 Support for the use of tax clubs in education
      8. 8.8 Looking to the future
      9. 8.9 Concluding remarks
    4. 9. Public education: engaging with secondary education in schools
      1. 9.1 Key findings
      2. 9.2 Introduction
      3. 9.3 Tax clinics as defenders of taxpayer rights
      4. 9.4 Partnering with secondary education
        1. How the partnership was established
        2. Benefits of the community partnership
      5. 9.5 Conclusion
    5. 10. Taxpayer resolution: improving taxpayer compliance in Indonesia
      1. 10.1 Key findings
      2. 10.2 Introduction
      3. 10.3 Taxation in Indonesia in a nutshell
        1. Registration
        2. Bookkeeping
        3. Payment
        4. Reporting
        5. Audits and penalties
      4. 10.4 Revenue and taxpayer compliance
      5. 10.5 Improving individual taxpayer compliance
        1. The formation of the FoT community
        2. The development of FoT
      6. 10.6 Conclusion
    6. 11. Policy changes: impact on and through the Tax Court
      1. 11.1 Key findings
      2. 11.2 Introduction
      3. 11.3 Government approach
        1. Regulations and other rules
      4. 11.4 Role of tax clinics in shaping the law
        1. Litigation: impact of clinics on the community of low-income taxpayers
        2. Commenting on proposed legislation, regulations, forms and rules
        3. Commenting on systemic problems at the IRS
      5. 11.5 Conclusion
    7. 12. Marginalised voices: tax and the criminal justice system
      1. 12.1 Key findings
      2. 12.2 Introduction
      3. 12.3 Making Tax Digital
      4. 12.4 Digital exclusion
      5. 12.5 Tax issues – people in prison
        1. Digital exclusion – people in prison
        2. People in prison/with previous lived experience of prison as clinic clients
        3. Prison and self-employment
        4. Tax and self-employment
      6. 12.6 Student and university benefits
      7. 12.7 Conclusion
  12. Part III. Tax clinics and our students
    1. 13. Pedagogical theory and clinical tax education
      1. 13.1 Key findings
      2. 13.2 Introduction
      3. 13.3 Fostering the next generation of tax advisers: the importance of pro bono
      4. 13.4 Relevant pedagogical theories
        1. Employability from tax clinics: work-integrated learning (WIL)
        2. Growing student motivation and confidence: self-determination theory (SDT)
      5. 13.5 Concluding remarks
      6. 13.6 Key reading
    2. 14. Enhancing student experience: shadowing, role-plays and reflection
      1. 14.1 Key findings
      2. 14.2 Introduction: pedagogical rationale
      3. 14.3 Initial collaboration
      4. 14.4 Implementation
        1. Student recruitment
        2. EOI, CV and job interview
        3. Participation and presentation
      5. 14.5 From theory to practice
        1. Shadowing
        2. Team-based approach
        3. Role-plays
        4. Reflection and report writing
        5. Career readiness
        6. COVID-19 and the impact on the student experience
      6. 14.6 Conclusion
    3. 15. Introducing tax advocacy to students
      1. 15.1 Key findings
      2. 15.2 Introduction
      3. 15.3 The structure of a clinic course
        1. The seminar component
        2. The client representation component
      4. 15.4 Major design choices within the clinic model
        1. The directive–nondirective continuum
        2. Level of student responsibility for cases
        3. Use of examples and templates
        4. Case supervision
        5. Tension between client service and student educational development
      5. 15.5 Developing a reflective practice
        1. Exercising agency over one’s professional development
        2. Building the habit of reflection
      6. 15.6 Skills and direct advocacy experience
        1. Law firm management
        2. Ethics
        3. Multicultural lawyering
        4. Legal skills
          1. 1. Interviewing
          2. 2. Fact and legal investigation
          3. 3. Client advice and communication
          4. 4. Document drafting
        5. The advocacy mind-set
      7. 15.7 Working with community members
      8. 15.8 Conclusion
    4. 16. Developing employability skills through practice-based learning
      1. 16.1 Key findings
      2. 16.2 Introduction
      3. 16.3 Rationale for the TAC at UEL
        1. To raise awareness and provide free guidance in response to the COVID-19 lockdown
        2. To support employability of our accounting and finance students
      4. 16.4 Relevant literature
        1. Voluntary services: student, faculty and practitioner participation
        2. Pro bono: the participation of experienced practitioners
      5. 16.5 Clinic design
        1. Student volunteers
        2. Practice-led teaching
        3. External impact, collaborations and partnerships
        4. Student experience
        5. The challenges of tax and accounting clinics
      6. 16.6 Data and methodology
      7. 16.7 Results and discussion
        1. Tax and accountancy clinic and employability skills development
        2. The impact of COVID-19 on student TAC experience
        3. The measurement of students’ satisfaction: quality of the TAC training
      8. 16.8 Concluding remarks
    5. 17. Students’ professional identity and a fully online tax clinic
      1. 17.1 Key findings
      2. 17.2 Introduction
      3. 17.3 The Griffith Tax Clinic
        1. Face-to-face
        2. Online
      4. 17.4 Research methodology
        1. Participants
      5. 17.5 Data results
        1. Overall
        2. Nationality
        3. PWE (Professional Work Experience)
        4. Limitations of research and future research
      6. 17.6 Concluding remarks
  13. Part IV. Moving forwards
    1. 18. A research roadmap for tax clinics
      1. 18.1 Key findings
      2. 18.2 Introduction
      3. 18.3 Developing the tax clinic as a research project
      4. 18.4 Mapping the research field
      5. 18.5 Research methods
      6. 18.6 Theoretical perspectives
      7. 18.7 Concluding remarks
    2. 19. Moving forwards: tax clinics and business schools
      1. 19.1 Key findings
      2. 19.2 Introduction: the civic university
      3. 19.3 Widening participation
      4. 19.4 The challenge of professional accreditation
      5. 19.5 Practical experience
      6. 19.6 Some ideas for clinics going forwards
        1. Replacing High Volume Agents (HVAs)
        2. Child Trust Funds
        3. Cryptocurrencies
      7. 19.7 Policy clinics
        1. Desk research for the Office of Tax Simplification
        2. Educating policy makers
        3. Drawing on students’ experiences of the tax system
      8. 22.8 Concluding remarks
    3. 20. Concluding remarks
  14. Index

Chapter 12 Marginalised voices Tax and the criminal justice system

Deborah Wood*

12.1 Key findings

We are in a digital world. Some communities, for instance the prisoner community, are left behind in the path to increasing digitalisation. Where tax obligations and guidance are also being digitised (seen, for example, in the UK’s Making Tax Digital programme), this can lead to individuals struggling to keep up with the tax system and their tax obligations. Tax clinics can help to bridge the gap between marginalised taxpayers and their tax obligations.

12.2 Introduction

This chapter will consider how university tax clinics can play a role in supporting some of the most marginalised groups in society, specifically people in prison and those leaving a prison environment. It is argued that such a role is particularly important given the increased digitalisation of tax and the way in which the prison community can be digitally excluded and lack the skills, access, confidence and experience to navigate new online systems. Students working with people who have criminal convictions can be uncharted territory for universities and may be met with negative perceptions and general resistance. Robust risk management processes are crucial, and, in the UK, the Ministry of Justice (MoJ) is currently working with higher education institutions to provide frameworks to guide future prison–university partnerships. Although this chapter draws largely from the UK experience, the themes raised in it can be usefully considered by clinics in other tax jurisdictions.

12.3 Making Tax Digital

Undeniably, we now live in a digital world. The United Nations (UN) states that digital technologies have advanced more rapidly than any innovation in history – there are few aspects of society that remain untouched by digitalisation.1 We have virtual learning environments in education, artificial intelligence-enabled technologies to support diagnosis and treatment in healthcare, and, in tax administration, tax authorities have looked to exploit new technologies to transform how tax is paid and reported.2

In 2015, the UK Government announced its intention to work towards the digitalisation of tax administration and HM Revenue and Customs (HMRC) embarked on its Making Tax Digital (MTD) programme. In July 2020, HMRC published a ten-year strategy for modernising the tax system which reconfirmed its commitment to digitalisation.3 The Foreword to the report stated:

The world has changed immeasurably over the last two decades, and the rapid growth of information and communications technologies and rising public expectations of world-class customer service mean that the UK both can and must have a fully digital tax system able to support taxpayers across the full range of their needs.4

The UK’s National Audit Office (NAO), in its 2020–21 report on HMRC’s annual accounts,5 stated that digitalisation would make it easier for HMRC to ‘get tax right’; something that would then increase public trust and confidence in the tax system. There are also financial incentives for HMRC and the UK Government to get ‘tax right’. According to the NAO report, HMRC originally estimated approximately £3 billion in extra tax revenue would be raised over the programme lifecycle, to 2027–28.6

In April 2019, initial steps were taken by HMRC towards its digitalisation agenda. In July 2017, the financial secretary to the treasury and paymaster general announced that, from April 2019, businesses with a turnover above the value added tax (VAT) threshold (currently £85,000) would have to keep their records for VAT purposes in a digital format and would need to provide their VAT return information to HMRC through software that was MTD compatible and compliant.7 Businesses are no longer allowed to maintain paper VAT records and HMRC online VAT return services are withdrawn when the business signs up to MTD.8

The rollout of MTD to other taxes was recently delayed. In December 2022, the UK government announced that MTD for Income Tax Self-Assessment (ITSA) would be delayed until April 2026 for sole traders (delayed again from April 2024).9 Professional bodies such as the Chartered Institute of Taxation (CIOT) and the Association of Tax Technicians (ATT) have welcomed the delay.10 Concerns had been expressed by numerous organisations involved in tax administration that more time was required to test software and key processes and also for HMRC to focus on communication, awareness raising and education of the changes being introduced. Despite the delay, concerns remain around the programme. Glenn Collins, head of policy, technical and strategic engagement at the Association for Chartered Certified Accountants (ACCA) responded to the Treasury statement: ‘There remain concerns around the level of support required by SMEs and the ability of small accountancy practices to meet the workload needs of regular reporting, unmanageable software costs and the low threshold for reporting under MTD.’

Originally, the MTD threshold in 2024 was £10,000. Now, the proposal is to operate MTD from April 2026 for an individual registered for self-assessment (either self-employed or with property income), with a qualifying income of more than £50,000. This threshold reduces, however, from April 2027 to £30,000.

As stated earlier, the UK is not alone in seeking to digitalise tax administration. The Institute of Chartered Accountants in England and Wales (ICAEW) recently published a report, Digitalisation of Tax: International Perspectives,11 which covered case studies from ten diverse tax administrations. The specific model of digitalisation varies across the administrations, from a focus on mandatory e-invoicing in Brazil to tackle avoidance, to extensive pre-population of tax returns in Estonia to comprehensive digital filing in the United States of America. However, a key theme arises across systems – digital exclusion. It is raised as one of the key lessons from the ICAEW study, with interviewees raising it more than any other challenge to the digitalisation agenda.

12.4 Digital exclusion

The UN’s Sustainable Development Goal 9 includes a specific target on global access to the internet.12 However, while internet access for all is necessary to tackle digital exclusion, it cannot on its own be sufficient. The Office for National Statistics has highlighted that ‘users of the internet can still be digitally excluded because they lack the skills to be able to confidently and safely navigate the digital world’.13 In the National Health Service’s (NHS) Digital Inclusion Strategy,14 it outlines three aspects of digital inclusion: connectivity (access to internet/infrastructure), digital skills (being able to use digital devices) and accessibility (including consideration of those who require assistive technology to access digital services). Lloyds Bank produces an annual benchmarking report on essential digital skills in the UK.15 Partly fuelled by the COVID-19 pandemic and the reliance it placed on digital connectivity, the 2021 report estimates that there are approximately 1.9 million fewer people digitally excluded than in 2020. However, the report estimates that there are still 11 million people in the UK that lack digital skills needed for everyday life, with 91 per cent of these lacking the most basic digital skills.

The UN recognises that digital technologies have the potential to be a ‘great equaliser’, helping to create greater access to services, improve financial inclusion and enhance connectivity. However, they also acknowledge the significant challenges posed by digital exclusion, stating that ‘Many of the people left behind are women, elderly, persons with disabilities or from ethnic or linguistic minorities, indigenous groups and residents of poor or remote areas’. In relation to women, the UN highlight that globally, the proportion of women using the internet is 12 per cent lower than that of men and in the least developed countries, this gap is increasing and is estimated to be 33 per cent.16

When digitalisation is gaining pace in a number of tax administrations, student-led clinics could arguably have a very significant impact on addressing the digital divide in a tax context. The UK system currently allows people to apply for an exemption from MTD if it is ‘not reasonable or practical for you to use computers or the internet due to age, disability or location’ or if ‘it’s not reasonable or practical for any other reason’.17 However, in the longer term, it is undisputable that people must be empowered to engage with the digital offering.

The Lloyds report profiles the digitally excluded and indicates that an individual is more likely to be excluded if they:

•   Are aged over 75

•   Have the lowest social grades (DE – semi-skilled and unskilled manual occupations, unemployed)

•   Are not working

•   Are living alone

•   Have no formal education

•   Are living with a sensory impairment that affects their day-to-day life.18

Many student tax clinics will undoubtedly already be engaging with communities who, based on the above profile, are more likely to be digitally excluded. University campuses frequently have significant access to computer facilities and with the typical undergraduate student being in the 18–24 age range,19 and in higher education, they are among a demographic that is more likely to be digitally skilled. There could be significant benefits of tax clinic students working alongside those who lack the foundational digital skills to access basic tax systems.

For example, in the UK an individual can set up and log into their personal tax account online. This enables them to view records held by HMRC and check crucial information such as national insurance number, tax code and previous income tax records. It also allows the individual to manage certain tax affairs online such as the marriage allowance and tax credits. Marriage allowance lets an individual transfer a set amount of their tax-free personal allowance to a spouse or civil partner. Tax credits are expected to be phased out by 2024 but are currently administered in the form of working tax credits and child tax credits by HMRC and are paid to those on a low income. To set up an account, it is necessary to sign in with a Government Gateway account or Gov.UK Verify. Both processes can be daunting for those who lack basic digital skills and guidance through the process from students could be beneficial.

However, this chapter specifically asks tax clinics to consider how they might work with a potentially new client basis, a group of the most marginalised and digitally excluded individuals in society; those that are in prison or have been released from a secure environment.

12.5 Tax issues – people in prison

There are a small number of not-for-profit organisations and charities who look at the tax issues faced by those in prison in the UK. One of these is the Tax Academy Community Interest Company (CIC), run by Paul Retout, who has lived experience of prison.20 In June 2021, Retout published an article, Prison and Tax: The Forgotten Issue, which summarised the key tax issues facing people in prison.21 The article highlighted that when people enter prison, HMRC are not notified so they continue to send correspondence to the last address they have on file for the individual. A self-employed individual may have had to close their business but may still be sent notices to file a tax return. When these letters are not responded to, HMRC assumes that the individual is noncompliant with their tax obligations and follows the ordinary process to address this, for example, with the issue of financial penalties.

As discussed in Chapter 4, there are a number of penalties that can be applied by HMRC under the UK system – for late payment of tax, for failing to complete a tax return, for failing to inform HMRC about changes that affect tax liability and for errors on a return that understate or misrepresent a tax liability. Penalties are very high and can quickly increase over a short period of time. For example, TaxAid, a national charity that provides support to low-income individuals who get into difficulties with their tax affairs, highlights that penalties for filing a late tax return can exceed £1,600 over the first twelve months from the filing date.22

An individual in prison will often not think to address outstanding tax liabilities for several reasons. For example, they often falsely assume that while in prison, other government agencies, including HMRC, will be notified and any obligations to the tax authority will be suspended during the period of incarceration. Therefore, it is frequently only upon release from prison, when an individual obtains a job, registers for benefits or registers for self-assessment that the scale of tax charges and penalties against them is realised. As Retout emphasises, at this point the individual is often in an extremely vulnerable state, both financially and mentally; struggling with several challenges such as finding safe accommodation, attempting to reintegrate with any remaining family and support networks and attempting to access welfare support. When an individual leaves prison, in the UK they are generally entitled to a prison discharge grant. This has recently been raised from £46 to £76 but does very little to meet the significant financial challenges the individual is faced with upon release. Outstanding tax liabilities and penalties will only add to these financial barriers, creating higher hurdles to effective reintegration into society.

Digital exclusion – people in prison

Access to digital technology in the prison estate is extremely limited. A recent briefing paper was published on prisons and the digital divide by the Prisoner Learning Alliance (PLA). The PLA describes itself as a network of organisations and individuals with expertise and interest in prison education who work to influence prison policy across England and Wales.23 In its report The Digital Divide: Lessons from Prisons Abroad, published in July 2020, the Alliance states, ‘In a world where digital technology is constantly changing and being updated, spending even a few months – let alone a few years – isolated from these changes can present huge obstacles for prisoners on release’.24 The challenges of digital isolation for this group have recently been recognised by the UK government. In April 2021 HM Prison and Probation Service (HMPPS) published their latest Digital, Data and Technology Strategy.25 The strategy set out the vision to 2024, with a key priority to give people in the prison system digital tools and technology to support their rehabilitation.26

However, the pace of change is likely to be slow. The PLA Briefing explains that current digital access in the UK prison system is very limited. In May 2022, the Parliamentary Education Select Committee published a report on prison education.27 It highlighted that the majority of prisons in England and Wales do not have cabling or hardware to support broadband and only 18 out of 117 prisons possess in-cell cabling. There are existing foundations to build upon, but significant developments are required, and it will arguably be difficult to maintain the gap between the prison estate and the outside world, let alone reduce it.

A system called the Virtual Campus (VC) is in place in all prisons in England and Wales. This is a restricted intranet facility which is available in communal spaces such as classrooms and libraries. The PLA highlights issues that many in prison face when accessing the existing limited digital offering – for example, they state that sometimes there are only a few computer terminals which host the VC in each prison. Additionally, the Education Committee note that evidence they received indicated that accessing communal areas with VC was frequently problematic due to staffing issues. Some prisons are also piloting the use of in-cell devices for enhanced security-cleared prisoners, but access is inconsistent and is dependent on individual prison funding availability and authorisation processes. PLA states that ‘there is a lack of coordination or uniformity in how widely and in what capacity these services are available’.28 The Education Committee agreed, stating that the lack of digital access was ‘leaving prisoners unprepared for the real world, lacking the digital skills they need for employment and life skills […] The digital divide between prisoners and the community is ever increasing’.29

As well as the obvious access issues, people in prison often fall into the digitally excluded ‘risk’ group, highlighted in the Lloyd’s report, discussed earlier. The Prisoners’ Education Trust (PET) that works to enhance the educational experience of people in prisons across England and Wales recently submitted evidence to the Education Select Committee, which is useful to refer to here.30 They emphasised that many people in prison come from disadvantaged backgrounds. For example, 24 per cent had experienced the care system, 15 per cent had been homeless prior to custody and past research indicates that over two-thirds of people were unemployed at the time they entered prison. The PET also highlights that the majority of those in prison have had negative educational experiences while growing up. For example, they point to a MoJ study on prisoners which reported that 63 per cent of those in the study had been suspended or temporarily excluded from school and 42 per cent reported having been permanently excluded from school.31 The Prison Reform Trust (PRT) also notes that research has consistently indicated that approximately a third of prisoners have a learning disability.32 Such individuals may find it more difficult to engage with digital technology without the additional barriers that the prison environment presents.

In December 2021, the UK MoJ published the Prisons Strategy White Paper, setting out a longer-term vision for the prison estate. The paper states that having an effective prison system is central to the government’s ‘levelling up’ agenda.33 One of the key challenges it notes, in achieving this aim, is the fact that too many prisons still lack basic digital infrastructure. A key step as part of its two-year foundation plan to support the strategy is scaling up the use of digital technology and empowering prisoners with the provision of safe and secure in-cell technology. Additionally, one of the six strategic priorities outlined in the paper is to increase skills-focused education, including giving people in prison the foundations and qualifications they need for work in the digital age. The Response to Consultation Questions was published in June 2022.34 In this paper it noted that a strong and consistent message emerging from the consultation was support for digital and technological advancement in prison.

People in prison/with previous lived experience of prison as clinic clients

While the digitalisation agenda advances rapidly and plans for those in digitally excluded communities, including those in prison attempt to catch up, opportunities exist for universities and their tax, business, law or advice clinics to bridge the gap. Arguably this forms part of their civic duty. Between 2018 and 2019, the UPP Foundation launched and ran the Civic University Commission.35 The UPP Foundation is a registered charity that aims to tackle issues facing the higher education sector.36 The Commission examined the economic, social, environmental and cultural role universities play in their local areas. In its final report, the chair, Lord Kerslake emphasised the growing importance of the civic role of universities: ‘As the United Kingdom grapples with the challenges of low growth, low productivity, the impact of austerity and widening spatial inequalities, universities can be (alongside local authorities and the health sector), significant “anchor institutions”, able to make an enormous impact on the success of their places’.37 The acknowledgement of the civic role of the university is not confined to the UK. Indeed, in other countries, for example the United States, the civic role has been far more prominent to date.38

In 2019, the University of Central Lancashire (UCLan) became the fiftieth university to sign a new ‘Civic University Agreement’, stating that, for the university, ‘civic engagement is not a “nice to have” or an “add-on”: genuine and meaningful relationships with the communities around us are vital’.39 Partly fuelled by this sense of civic duty, staff at Lancashire School of Business and Enterprise (LSBE) at UCLan recently took small steps to pilot how undergraduate and postgraduate students in a business school could work with people in the prison community. This developed from an existing tax clinic project: the North West Tax Clinic. In January 2020, students and staff within the school began working in partnership with students and staff at the University of Lancaster and TaxAid. The North West Tax Clinic was established for a pilot period, until summer 2020, and was the first university tax clinic in the UK.

Due to publicity surrounding this project, in March 2020, LSBE were approached by RIFT Social Enterprise (RSE). RSE was established in 2018 and is a not-for-profit CIC that provides support to those in prison in preparation for reintegration into society. The chief executive, Andy Gullick is a former UCLan graduate, and he approached the business school to discuss whether LSBE students could provide similar student volunteer support to their service. UCLan as an institution was already committed to working with those in the criminal justice system, through the dynamic Criminal Justice Partnership (CJP).40 However, the pilot project represented a novel venture for the business school and allowed new links to be established with longstanding CJP disciplines, such as criminology and law and presented academics and students within LSBE with opportunities to become involved in work that ordinarily, they might not be exposed to.

At the beginning of the project, the focus was on the tax refund service that RSE provides to its clients. In initial discussions with RSE staff, at the outset of the project in March 2020, the barriers and challenges highlighted by Retout (outlined earlier), were confirmed by their experiences. RIFT SE supports people with convictions to get their tax position up to date, reclaim overpaid tax, which can be used to support their resettlement plans and to address any late filing and subsequent penalties with HMRC. They work across a number of UK prisons and Gullick, a former prison governor and probation officer, said that their work, in conjunction with HMRC and the MoJ, indicated that a significant proportion of those entering prison were accruing penalties due largely to nonsubmission of self-assessment. The partnership between RSE and LSBE therefore started looking at how students in the business school could be used to support the work of RSE – at the time they were an extremely small team and the demand for their service far exceeded the resources available. It was hoped that staff and students at UCLan could support delivery of the service in the local prison estate. However, shortly after discussions began, the COVID-19 pandemic took hold and on 23 March 2020, the UK prime minister announced the first complete lockdown to tackle the virus, with measures coming into force on 26 March following the approval of the Coronavirus Act 2020.

Over the last two and a half years, the UK (along with much of the world) has been through a cycle of several lockdowns. Throughout this period, when restrictions to day-to-day life have been significant, with working from home being the norm and with highly limited, regulated social contact permitted, much of society has turned to digital technology to maintain any degree of normality in day-to-day life. This experience has not been replicated in the prison estate. Although there are indications that digital technology is being applied more consistently at a management and staff level across prisons, the same cannot be said for those serving prison sentences. There have been some positive developments, for example a software application called ‘Purple Visits’ was introduced across the prison and youth offending estate in 2020, to enable those in prison to connect with family and friends via video. However, generally, it is arguable that the digital divide between prisons and the general population has become more pronounced. During the pandemic, it has been widely reported that almost all of those in prison have spent twenty-three hours per day locked in their cell, in solitary confinement.41 For the average prisoner, access to communal areas such as libraries, and therefore existing, albeit limited technology, has been severely restricted.

The pandemic has also meant that access to prisons for visitors is also highly restricted. Original discussions with RSE had focused on plans where students could go into local prisons and work with residents to raise awareness of general tax rules and refund processes. RSE had developed a model where individual tax ‘champions’ would be trained to disseminate information to others and identify any refund or penalty issues that the social enterprise could work on, on behalf of the individual. Any refunds reclaimed or penalties written off could make a significant difference to the financial position of the resident upon release. Unfortunately, COVID-19 meant that this work was no longer feasible. However, when faced with a decline in the ongoing day-to-day refund work, RSE senior management had breathing space to focus on other areas of work that would support prisoner reintegration. A key area that they identified in this regard was in the area of self-employment.

Prison and self-employment

In its summer 2021 briefing, the PRT articulates the challenges that those released from prison face when trying to secure employment.42 Studies reveal that six weeks after leaving prison, only 10 per cent of people are in employment. After a year, this only rises to 17 per cent.43 The Rehabilitation of Offenders Act 1974 gives people with spent convictions and cautions the legal right of nondisclosure when applying for jobs. Additionally, some employers, a notable example being Timpson,44 the UK-based family run retail business, actively engage with those leaving prison and provide employability support to individuals within prison and upon release. Other large employers, such as the Civil Service, are also taking steps to increase job opportunities for those with convictions.45 However, for many, having a criminal conviction can appear as an insurmountable barrier to re-enter the job market. Self-employment may therefore be a viable alternative for those leaving prison. Little joined-up and consistent support for self-employment is currently in place. When, in 2018, the government published its strategy on Education and Employment for adult prisoners, RSE highlighted to the Cabinet Office that it did not consider the possible rehabilitative opportunities for those leaving prison in self-employment.46 This is surprising when many of the training and rehabilitation opportunities presented to those in prison are in areas where self-employment opportunities would be common, for example in catering and construction.

In 2017, David Cameron, then UK prime minister, commissioned a review to be led by David Lammy, a member of parliament, on the particular challenges faced by those from a black, Asian and minority ethnic background in the criminal justice system. The Lammy Review also considered general challenges faced by those within the system, particularly with regards to rehabilitation and reintegration. The review stated, ‘Ex-offenders need effective services and supportive communities, but above all else, they need work. A job removes dependence on criminality for income, and an opportunity for education or training boosts self-respect and gives ex-offenders a stake in society and in their own future.’47 An undergraduate research intern was employed by LSBE in summer 2020 to undertake a review of academic literature in this area. She reviewed recent studies, for example a research review undertaken by Grosholz et al., which identified the potential for impactful work and collaborations to be carried out in the area of incarceration and entrepreneurship.48

Encouraged by such literature and in collaboration with RSE, a self-employment virtual support clinic was launched in January 2021. It was a small pilot project which involved twelve students, mainly undergraduate, from disciplines including marketing, accounting and general business, and ran until April 2021. Much of the work was outside of the direct remit of a specific tax clinic – there were tax aspects to the project but often queries involved students carrying out research into many other areas too. The project included students, with staff supervision, reviewing business plans from prison residents and researching areas to help refine and develop their plans. It also involved a redesign of material provided by RSE to those in prison to try and make it as accessible and engaging as possible and encourage uptake of the RSE provision. In summer 2021, RSE was successful with a number of large funding contracts and recruited a team of specialists to provide and develop an ongoing service. RSE now provides self-employment and business start-up support across the UK under a number of contracts such as the Department of Work and Pensions Restart Scheme. In November 2021, it won the Social Impact in Enterprise Award from the National Enterprise Network for its work.49

Tax and self-employment

Although this project did not specifically focus on tax, through the work undertaken a number of tax issues were raised that future university clinics could consider. For example, as stated above, many in prison are trained in areas of construction. An understanding of the Construction Industry Scheme (CIS) and the registration requirements as a subcontractor is crucial information for the individual. Registration for the scheme is online and a focus on the digital skills needed to do this and submit ongoing returns could be highly beneficial. VAT queries were often raised by clients during the pilot. VAT can be extremely confusing for anyone who has no previous experience with the system, even more so if you have been isolated from the system and developments for a number of years. Here, students could work on developing inclusive material that explained the area in accessible formats.

Other common queries were those around the different tax treatments of a sole trader and limited company – these are the sort of areas that might usefully be tackled by undergraduate students within a business school.

As stated at the outset, it is recognised that working with prisons may present new challenges for universities around risk management. Engaging with other departments across the university who have prior experience in this area, for example, criminology, is vital here.

The pilot project at UCLan was completely supported by the prisons lead from the CJP. Partnering with other organisations already working in the field is another way to take the first steps into such a new area – UCLan’s partnership with RSE was invaluable in this regard. Additionally, when looking to start this sort of work, there are many lower risk opportunities that can be considered and can potentially be integrated into the existing curriculum. For example, clinics could look to carry out policy work and supporting research on the current system and interface between prison and tax authorities, to scope and set out system improvements. Work could be carried out to design materials on key topics relating to tax and self-employment in accessible formats, that could be provided to those in prison. Students could look to produce material to raise awareness of tax allowances like the marriage allowance – this can still be claimed by a person in prison and can present financial benefits to their family.

12.6 Student and university benefits

As explored in more detail in Chapter 13, this type of work arguably provides many benefits to students – such projects can allow students to reinforce theoretical concepts in a safe, supportive learning environment, bringing relevance and revelation to their learning experience and providing opportunities for inclusive, real-life learning.50 It can also help student volunteers to develop key employability skills, particularly in the areas of adaptability, communication, creative problem solving and effective client relationship management. As outlined earlier, such projects can expose students to working with students across academic disciplines and provide rich learning experiences for them. Another key aspect of this type of work is emotional intelligence. Working with people in marginalised communities, particularly prison, can allow the learner to explore unfamiliar settings and interactions.

Drawing upon educational theory, such clinical learning exposes students to ‘disorienting moments’ and can challenge pre-existing assumptions about the world. A growing body of work acknowledges the importance of empathy in ethical leadership and therefore the importance of providing business students with opportunities to see life through the eyes of others. Newly developed scales, such as the EPIC (Evaluating the Personal, Interpersonal and Contextual dimensions of growth through learning) scale recently developed by academics at the University of Cambridge and University of Edinburgh present exciting opportunities to track student development.51 From a university perspective, there are many advantages of exploring this type of work. As outlined earlier, this work can fit into the university’s civic duty and strategy, but it can also provide research opportunities, raise the profile of the university, enhance the teaching and learning strategy and contribute to accreditation standards.52

12.7 Conclusion

Globally, digitalisation of core services continues to gather pace. This includes the digitalisation of tax administration. This chapter has focused on the UK example to highlight that one of the key challenges for effective digitalisation is for it to advance in a way which does not further exclude those in marginalised communities. Universities are in a place, with facilities and digitally engaged students, to work with those in these communities to try and reduce the digital divide. It could be argued that when the internet continues to develop at such a pace, affecting so many aspects of our everyday lives, from buying a bus or train ticket to checking a bank balance, universities have a civic duty to do this.

One of the most digitally excluded groups is those in prison. As well as having extremely restricted access to digital facilities, often for a long period of time, many of those in prison have other characteristics that mean they are more likely to face digital exclusion. Working with prisons may be uncharted territory for tax clinics and business schools. However, universities often have existing links with prison environments through other academic disciplines. Although working with prisons may present new risks and challenges, frameworks are being developed to guide universities, and lower risk and less resource-intensive projects, such as policy work and the development of accessible materials, can be a stepping stone into this area.

  1. *   Deborah Wood, Associate Lecturer, Open University.

  2. 1   <www.un.org/en/un75/impact-digital-technologies> accessed 2 September 2022.

  3. 2   ICAEW, ‘Digitalisation of Tax: International Perspectives’ (2022), <www.icaew.com/-/media/corporate/files/technical/technology/thought-leadership/digitalisation-of-tax.ashx> accessed 2 September 2022.

  4. 3   Gov.UK, ‘Building a Trusted, Modern Tax Administration System’, <www.gov.uk/government/publications/tax-administration-strategy/building-a-trusted-modern-tax-administration-system> accessed 2 September 2022.

  5. 4   Ibid.

  6. 5   National Audit Office, ‘Report by the Comptroller and Auditor General’ (29 October 2021), <https://collateral.prmax.co.uk/collateral/186575.pdf> accessed 2 September 2022.

  7. 6   Ibid.

  8. 7   HMRC, ‘VAT Notice 700/22: Making Tax Digital for VAT’, <www.gov.uk/government/publications/vat-notice-70022-making-tax-digital-for-vat> accessed 2 September 2022.

  9. 8   See <www.icaew.com/technical/tax/making-tax-digital/mtd-guidance/mtd-overview> accessed 2 September 2022. The enabling primary legislation for MTD was introduced in the form of the Finance (No.2) Act 2017; sections 60–62 addressed digital reporting and recordkeeping for VAT along with income tax and Schedule 14 made relevant amendments to the Taxes Management Act 1970. The digitalisation in respect of VAT is extended to all businesses, including those under the VAT threshold, from April 2022.

  10. 9   HMRC, ‘Government Announces Phased Mandation of Making Tax Digital for ITSA’ (Gov.UK, 19 December 2022), <www.gov.uk/government/news/government-announces-phased-mandation-of-making-tax-digital-for-itsa> accessed 14 February 2023; UK Parliament, ‘Update on Making Tax Digital: Statement HCWS308’ (23 September 2021), <https://questions-statements.parliament.uk/written-statements/detail/2021-09-23/hcws308> accessed 2 September 2022.

  11. 10   ATT, ‘Leading Tax Bodies Respond to the Making Tax Digital Delay’ (ATT News, 23 September 2021), <www.att.org.uk/technical/news/leading-tax-bodies-respond-making-tax-digital-delay> accessed 2 September 2022.

  12. 11   ICAEW, ‘Digitalisation of Tax’.

  13. 12   <https://sdgs.un.org/goals/goal9> accessed 2 September 2022.

  14. 13   Office for National Statistics, ‘Exploring the UK’s digital divide’ (4 March 2019), <www.ons.gov.uk/peoplepopulationandcommunity/householdcharacteristics/homeinternetandsocialmediausage/articles/exploringtheuksdigitaldivide/2019-03-04> accessed 2 September 2022.

  15. 14   NHS, ‘What We Mean By Digital Exclusion’, <https://digital.nhs.uk/about-nhs-digital/our-work/digital-inclusion/what-digital-inclusion-is> accessed 2 September 2022.

  16. 15   Lloyds Bank, ‘Essential Digital Skills Report 2021’ (3rd edition, 2021), <www.lloydsbank.com/assets/media/pdfs/banking_with_us/whats-happening/211109-lloyds-essential-digital-skills-report-2021.pdf> accessed 2 September 2022.

  17. 16   United Nations, ‘The Impact of Digital Technologies’, <www.un.org/en/un75/impact-digital-technologies> accessed 2 September 2022.

  18. 17   HMRC, ‘Apply for an Exemption from Making Tax Digital for Income Tax’, <www.gov.uk/guidance/apply-for-an-exemption-from-making-tax-digital-for-income-tax> accessed 2 September 2022.

  19. 18   Lloyds Bank, ‘Essential Digital Skills Report 2021’, 14.

  20. 19   HESA, ‘Who’s Studying in HE?’, <www.hesa.ac.uk/data-and-analysis/students/whos-in-he#characteristics> accessed 2 September 2022.

  21. 20   The Tax Academy, <https://thetaxacademy.co.uk/paul-retout/> accessed 2 September 2022.

  22. 21   Paul Retout, ‘Prison and Tax: The Forgotten Issue’ (The Tax Academy, 1 June 2021), <www.russellwebster.com/prison-and-tax-the-forgotten-issue/> accessed 2 September 2022.

  23. 22   TaxAid, <https://taxaid.org.uk/about> accessed 2 September 2022; TaxAid, ‘Late Filing Penalties and Appeals’, <https://taxaid.org.uk/guides/taxpayers/tax-returns/late-filing-penalties-and-appeals> accessed 2 September 2022.

  24. 23   Prisoner Learning Alliance, <https://prisonerlearningalliance.org.uk/vision-and-mission/> accessed 2 September 2022.

  25. 24   Prisoner Learning Alliance, ‘The Digital Divide: Lessons from Prisons Abroad’ (July 2020), <https://prisonerlearningalliance.org.uk/wp-content/uploads/2020/07/The-Digital-Divide-Lessons-from-prisons-abroad.pdf> accessed 2 September 2022.

  26. 25   HM Prison and Probation Service, ‘Digital, Data and Technology Strategy’ (April 2021), <https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/993861/HMPPS-Digital-Data-and-Technology-Strategy-2021_22-4.pdf> accessed 2 September 2022.

  27. 26   Ibid., 5.

  28. 27   UK Parliament Education Committee, ‘Not Just Another Brick in the Wall: Why Prisoners Need an Education to Climb the Ladder of Opportunity’ (18 May 2022), <https://publications.parliament.uk/pa/cm5803/cmselect/cmeduc/56/report.html> accessed 2 September 2022.

  29. 28   Prisoner Learning Alliance, ‘The Digital Divide’, 4.

  30. 29   UK Parliament Education Committee, ‘Not Just Another Brick in the Wall’.

  31. 30   Education Select Committee, ‘Left Behind White Pupils from Disadvantaged Backgrounds: Written Evidence by Prisoner’s Education Trust’, <https://committees.parliament.uk/writtenevidence/6266/html/> accessed 2 September 2022.

  32. 31   Gov.UK, <www.gov.uk/government/collections/surveying-prisoner-crime-reduction-spcr> accessed 2 September 2022.

  33. 32   Prison Reform Trust, ‘Prison: The Facts – Summer 2021’ (July 2021), <https://prisonreformtrust.org.uk/publication/12203-2/> accessed 2 September 2022.

  34. 33   Ministry of Justice, ‘Prisons Strategy White Paper’ (December 2021), <https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1038765/prisons-strategy-white-paper.pdf> accessed 2 September 2022.

  35. 34   Ministry of Justice, ‘Prisons Strategy White Paper: Response to Consultation Questions’ (June 2022), <https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1082220/prisons-strategy-white-paper-govt-response.pdf> accessed 2 September 2022.

  36. 35   The UPP Foundation, <https://upp-foundation.org/about-us/civic-university-network/> accessed 2 September 2022.

  37. 36   The UPP Foundation, <https://upp-foundation.org/about-us/> accessed 2 September 2022.

  38. 37   The UPP Foundation, ‘Truly Civic: Strengthening the Connection between Universities and Their Places’ (February 2019), <https://upp-foundation.org/wp-content/uploads/2019/02/Civic-University-Commission-Final-Report.pdf> accessed 2 September 2022.

  39. 38   Robin Hambleton, ‘How Can the US Experience Advance the Civic University?’ (WONKHE, 14 March 2019), <https://wonkhe.com/blogs/how-can-the-us-experience-advance-the-civic-university-2/> accessed 2 September 2022.

  40. 39   University of Central Lancashire, <www.uclan.ac.uk/news/university-of-central-lancashire-pledges-commitment-to-the-local-community> accessed 2 September 2022.

  41. 40   University of Central Lancashire, <www.uclan.ac.uk/research/centres/criminal-justice-research-partnerships> accessed 2 September 2022.

  42. 41   Prison Reform Trust, ‘Prisoners’ Mental Health Suffering under Conditions of “prolonged solitary confinement”’ (8 March 2021), <https://prisonreformtrust.org.uk/prisoners-mental-health-suffering-under-conditions-of-prolonged-solitary-confinement/> accessed 2 September 2022.

  43. 42   Prison Reform Trust, ‘Prison’.

  44. 43   Table 8, Ministry of Justice, ‘Community Performance Quarterly: Update to March 2020’ (2021), <www.gov.uk/government/statistics/community-performance-quarterly-update-to-march-2020> accessed 2 September 2022; Ministry of Justice (2018) Education and employment strategy (2018), <www.gov.uk/government/publications/education-and-employment-strategy-2018> accessed 2 September 2022.

  45. 44   Timpson, <www.timpson.co.uk/> accessed 2 September 2022.

  46. 45   Rupert McNeil, ‘Ban the Box’ (Civil Service Blog, 8 February 2016), <https://civilservice.blog.gov.uk/2016/02/08/ban-the-box/> accessed 2 September 2022.

  47. 46   Ministry of Justice, ‘Education and Employment Strategy’ (May 2018), <www.gov.uk/government/publications/education-and-employment-strategy-2018> accessed 2 September 2022.

  48. 47   The Lammy Review (8 September 2017), <www.gov.uk/government/organisations/lammy-review> accessed 2 September 2022.

  49. 48   Jessica Grosholz et al., ‘Entrepreneurship Education in the Transformation of Incarcerated Individuals: A Review of the Literature and Future Research Directions’, International Journal of Offender Therapy and Comparative Criminology 64 (2020): 1551. <www.researchgate.net/publication/342047980_Entrepreneurship_Education_in_the_Transformation_of_Incarcerated_Individuals_A_Review_of_the_Literature_and_Future_Research_Directions>.

  50. 49   National Enterprise Network, <www.nationalenterprisenetwork.org/> accessed 2 September 2022.

  51. 50   Sara Flowers, ‘Ephebagogy: A White Paper for Educators and Researchers’ (2016), available online, <www.academia.edu/24952166/Ephebagogy_A_white_paper_for_educators_and_researchers> accessed 2 September 2022.

  52. 51   Ingrid Obsuth et al., ‘Validation of a New Scale Evaluating the Personal, Interpersonal and Contextual Dimensions of Growth through Learning: The EPIC scale’, Studies in Educational Evaluation 74 (2022): 1.

  53. 52   See, for example, ‘AACSB Accreditation Standard 9: Engagements that Impact Business and Society’, available at <www.aacsb.edu/educators/accreditation/business-accreditation/aacsb-business-accreditation-standards> accessed 2 September 2022.

Annotate

Next Chapter
Part III Tax clinics and our students
PreviousNext
All rights reservedCC BY-NC-ND 4.0
Powered by Manifold Scholarship. Learn more at
Opens in new tab or windowmanifoldapp.org