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Government plans to reduce administrative costs to business by £10bn will fail unless the complexity of the tax code is tackled, the Institute of Chartered Accountants in England and Wales (ICAEW) has warned.
Two of the UK’s three longest Finance Acts were enacted in the previous parliament, the ICAEW notes in a letter to the chancellor of the exchequer, George Osborne, while calling for a “one in, two out” principle to apply to tax laws.
Government plans to reduce administrative costs to business by £10bn will fail unless the complexity of the tax code is tackled, the Institute of Chartered Accountants in England and Wales (ICAEW) has warned.
Two of the UK’s three longest Finance Acts were enacted in the previous parliament, the ICAEW notes in a letter to the chancellor of the exchequer, George Osborne, while calling for a “one in, two out” principle to apply to tax laws.
The institute is also keen for the independent Office of Tax Simplification (OTS) to be given greater resources, and would like to see a National Insurance exemption for apprentices of all ages in small firms.
Businesses with up to 50 employees should make all real-time information reports and payments once a month, the ICAEW tells Osborne ahead of next month’s Budget. The professional body also recommends an easier pension auto-enrolment process for employers with up to 25 members of staff.
ICAEW chief executive Michael Izza added that the government ought to confirm a long-term rate of the annual investment allowance.
“Reaffirming the figure at £500,000 will provide stability and consistency to firms that like to plan and invest for the long term, and would kick-start the kind of investment needed to enable businesses to thrive,” he said.
