The Chartered Institute of Taxation has called on the new coalition to prioritise tax reform.
They have written to George Osborne, the new chancellor, highlighted the need to simplify the current tax regime. Last week, whilst speaking to the CBI, Osborne pledged to simplify the business tax regime. Since the Labour party took office in 1997, the tax legislation handbook doubled in size.
Vincent Oratore, the new president of the CIoT, acknowledged that taxpayers realise we are currently living in hard times but they will not understand if the emergency budget makes it harder for them to comply with legal obligations.
The chancellor recognises that all of these complex regulations, such as IR35, are deterring freelancers from starting up their own business and he has already said that corporate tax reform will see lower and simpler rates. PAYE umbrella companies are also hampered by unclear and complex regulation.
Small businesses and freelance workers have a vital role to play in securing the country’s economic recovery and the promise of a clear and simple tax regime will no doubt come as a welcome relief.
The first coalition budget will be delivered on June 22nd and it is expected that the chancellor will announce £6 billion worth of public sector spending cuts.
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