When the chancellor George Osborne said, his dream was "that people might actually understand the tax laws which they were being asked to comply with". What was he talking about?
Well last week the Office of Tax Simplification was launched the chancellor stated that the "spaghetti bowl" of UK tax law is to be simplified to cut the burden on business and attract foreign investment.
It is very true that we have an extremely complex tax system with 11,000 pages on tax codes.
The intention is to initially focus on two areas, the first being the allowances exemptions and some 400 reliefs with the intention to streamline the system.
Secondly will be music to many ears, as the OTS will examine the controversial IR35 legislation. They hope to be able to announce a simplified alternative to this unpopular tax system introduced in the late 1990`s.
With the announcement of cuts in spending highlighted by the coalition government, combined with Mr Osborne` earlier words “push for a bonfire of the quangos" Shadow Chief Secretary to the Treasury Liam Byrnehow raised the question of how the OST is to be funded?
Mr Gauke said the OTS would be paid for out of existing budgets.
In addition the chairman of the body will be former Conservative MP and Treasury minister Michael Jack and its director will be John Whiting, formerly of PricewaterhouseCoopers, who is tax director at the Chartered Institute of Taxation. Neither will be paid.
It is hoped that any reforms will hope to stimulate Economic growth.
Many will applaud the government’s decision to look at the UK tax system any especially the position of IR35, let’s just hope that the desired result of SIMPLIFICATION is achieved.
We all remember the introduction of Self Assessment which was supposedly introduced to let the average tax payer take control of their tax affairs in an easy to understand way.
We will all be waiting on the side lines with bated breath.
Sunday, 25 July 2010
I have a dream
Posted by jkr at 01:10
Subscribe to:
Post Comments (Atom)
1 comments:
I completely agree with these points. Simplification is what is required here. Plenty of people have been calling for the "abolition" of IR35, however this is unlikely as IR35 cannot simply be removed in isolation. Let's hope it's not replaced with anything more onerous!
Bryan Jackson, Contract Eye.
Post a Comment