As each tax year passes we hear more and more people calling for a simpler tax system in the UK. As it stands, the UK tax system is one of the most complex in the world.
When the Chancellor announces new measures during his annual Budget report, the tax legislation continually becomes longer and even more complex. In a bid to curb this never ending expansion of tax legislation, the Office of Tax Simplification (OTS) have been asked to review the impacts of merging Income Tax and National Insurance. Their report is due to be published by next year’s Budget.
Whilst we wait for the outcome of the OTS report, the Tax Faculity of the Institute of Chartered Accountants in England and Wales (ICAEW) have published their own report, aimed at non-tax specialists, with the view to creating a discussion between interested parties.
The report looks at four options for merging the UK tax and social security systems and makes for a very interesting read, in particular Appendix 3, which sets out the tax and social security systems of other countries.
Tax Manager at Sedulo, David Evans, says…
“We would recommend that all of our clients and contacts have a look at the report and we would welcome their thoughts. It is evident that this is an issue that affects a large number of people. Will the Government be bold and make radical changes to truly simplify the system or will the issue be put back on the “too difficult” pile? We’ll have to wait and see.”