The Institute of Chartered Accountants of Scotland (ICAS) has written to George Osborne, the new Chancellor of the Exchequer, calling on him to address a number of serious deficiencies in the UK tax system.
Competitiveness: The United Kingdom needs to have a clear policy on taxation which encourages business to retain and develop UK based operations and headquarters.
Fairness: The tax regime for unincorporated businesses should be brought more closely into line with that for companies. Also, working should always be more profitable than not working, and the highest marginal rate of income tax should be limited to 50%.
Simplicity: Existing complexities should be cut to help ordinary individuals and small businesses self-assess their tax liabilities. Tax credits rules should be aligned more closely with income tax rules, personal tax allowances should be rationalised to reduce the bureaucratic churn of taxing individuals on small incomes and then paying them benefits, and income tax and National Insurance should be merged to simplify administration.
Osborne's priority, rightly or wrongly, will be to reduce the budget deficit as quickly as possible. Sadly, simplifying the tax system will not be his number one priority.
Tax does have to be taxing.
Professional Cover Against the Threat of Costly TAX and VAT Investigations
What is TAXWISE?
TAXWISE is a tax-fee protection service that will pay up to £75,000 towards your accountant's fees in the event of an HM Revenue & Customs full enquiry or dispute.
To find out more, please use this link Taxwise
Tax Investigation for Dummies, by Nick Morgan, provides a good and easy to read guide for anyone caught up in an HMRC tax investigation. A must read for any Self Assessment taxpayer.
Click the link to read about: Tax Investigation for Dummies